Future of supply chain Future of supply chain Future of supply chain

Download eBook | A resilient supply chain | A future-proof supply chain | How KPMG can help | Contact us

Two years into the pandemic, many believe supply chain worldwide will continue to be affected by the impacts of COVID-19 for many months to come. The sector has certainly been struggling to cope, as peaks and troughs of demand, logistics bottlenecks, border restrictions and workforce challenges are contributing to severe disruption. Research shows that more than 90 percent of the Fortune 1000, including many technology companies, have been affected by supply chain issues¹.

The pandemic has exposed endemic weaknesses, such as limited valuable data, insufficient risk management and a fundamental lack of agility. There has never been a greater need to put focus on transforming the supply chain function in your organisation. With consumers hoping for a return to the norm – where they can buy what they want, when they want – and businesses anxious to satisfy those needs, supply chain leaders have the opportunity to reset their plans, processes, technology and people.

A robust data collection system, that's integrated with AI and predictive analytics, can provide you with a cohesive picture of every element of your supply chain, enhancing your ability to plan, predict possible threats and response to these threats efficiently. Other digital technologies also offer many benefits you should take advantage of – understanding customer needs, effectively manage new partnerships and more.
 

A customer centric supply chain acknowledges that in this day and age, customers expect flexible, anytyme and anywhere delivery service. The new delivery service model requires a sophisticated supply chain system that integrates the front, middle and back offices. But more importantly, your supply chain system needs to be built with customer insights at the core.

With the need of digital technologies to transform supply chain from the old operating model to the new operating model, upskilling your employees is an important next step that cannot be overlooked. Hiring more digital talents is not always the best way to solve the problem. As you go through the transformation process, developing strategies that enhance your workforces’ ability to continuously adapt is key.

Under-utilised assets are anoperational burden. The rise of digital platforms provides your business with access to a whole new world of highly efficient and cost effective services. It also creates an opportunity to become an as-a-service provider, which generates potential new revenue streams and monetises surplus asset capacity. Becoming an as-a-service provider can mitigate costs via these new revenue streams.

Up until recently, supply chain control towers were designed to look at the supply chain in isolation. However, with the development of multi-party, consumer-driven networks, cognitive decision centres (CDCs) replace the old supply chain towers and provide real-time visibility, facilitate multi-party collaboration. Allowing for more autonomous control through AI and machine-learning.

Geographical expansion into emerging markets has become a common strategy for many businesses wanting to maximise sales, however, it comes with complexities and extra costs. Micro supply chains help your business balance the cost of complexity with the value gained from offering variety. They enable manufacturers to switch sources, production and delivery at short notice, to introduce new products and scale volumes up or down swiftly to adapt to changes in demand.