Inventory, working capital, and automation spotlight

Given our role in serving influential organizations across the globe, KPMG has frequent touchpoints with chief supply chain officers (CSCOs) leading to insights regarding top-of-mind issues and trends. In our most recent conversations, CSCOs are telling us that their supply chains are regaining stability and singled out inventory, working capital, and automation as their most significant current concerns.

Key takeaways

• CSCOs are finally able to see their inventory levels stabilize after years of having to manage supply chain disruptions caused by the pandemic and global events.
• With supply chains now more reliable, CSCOs are taking a “back-to-basics” approach to managing inventories, such as price negotiations, sourcing, and demand planning. At the same time, with the uncertain economy and rising interest rates, CSCOs are carefully watching their working capital levels.
• Even with more reliable supply chains, visibility remains at top priority for CSCOs. Facilitated by a “control tower” approach, visibility can help increase efficiencies, promote cost optimization, and manage risk.
• Finally, CSCOs are looking at automation and robotics for their warehouse and shipping operations, but most are taking a measured approach, testing out solutions in specific facilities before turning to more organization-wide deployment.