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The Future is in the Supply Chain


The 2013 Global Manufacturing Outlook from KPMG found that “the next wave of supply chain gains will be the most dramatic yet, with a new spirit of partnership, transparency, and visibility across the value chain creating enormous economic value from a technology-enabled demand-driven supply chain.”

Companies are assessing and adjusting their supply chains as they seek to capitalize on the above opportunities and respond to increased volatility in the global manufacturing environment.

The report also found that:

  • Companies that are starting to view partners as more of a “network” than a “chain” are finding significant benefits.
  • As companies step up investment in innovation, whether in search of “breakthrough” R&D or incremental improvements to existing products and services, they are increasingly looking to their supply network for ideas
  • 51 percent of survey respondents say partnerships, rather than in-house efforts, will characterize the future of innovation.

Companies are recalibrating their supply chains as they seek to capitalize on opportunities and respond to challenges:

  • A majority (57 percent) of survey respondents said that optimizing inventory, transportation, logistics, and other operational costs is central to achieving operational priorities.
  • For large companies (US $5 billion and over) in particular, demand-driven planning (cited by 41 percent) and integrated business planning (36 percent) figure among their top strategies for supply-chain optimization.

Collaborating with partners and suppliers on innovation helps to bring the best ideas to the table quickly and gives manufacturers an edge,” said Ken Seel, KPMG Head of Conglomerates. “Choosing the right partners and opportunities is critical. Who works best with our company? Do we have the right processes to ensure speed to market? Moving past business as usual is essential to succeed in the new economy.

For more information, you can view the full report here: Global Manufacturing Outlook 2013 Report (PDF).

Focus on critical areas of your supply with a strategic approach to supply chain optimization.

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