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4 keys to building a stronger supply chain

To build a stronger supply chain, focus on visibility, analytics, planning, and execution

The car you are driving probably has a navigation system that shows you the best route and alerts you when there is a problem. Chief Supply Chain Officers (CSCOs) need the same visibility into their supply chains, with early warnings when there is trouble ahead. Analytics can drive decision-making and generate insights for supply chains, just like how a digital twin supports critical decisions. Saving for retirement benefits from planning and so do supply chains. Both analytics and planning come together to help in building a stronger supply chain. 

To build a stronger supply chain resilient to disruptions and challenges, let’s review the four essential ingredients: visibility, analytics, planning, and execution. 

1


Visibility: End to end

Visibility is needed to effectively manage your supply chain. For example, if you have a clearer understanding of what is coming from your suppliers, including those beyond tier one, you can proactively plan deliveries, including notifying warehouse operations in advance. Collaborating early and often with logistical partners helps build trust and streamline operations.

Whether you are navigating natural disasters, geopolitical flareups, or the latest regulation, having end-to-end visibility equips you to make better and timely decisions throughout your supply chain. Visibility is especially important for these anticipated or unforeseen incidents. With visibility, you will be prepared to take corrective actions, like moving quickly to identify potential risks to the flow of materials. Improve visibility by relying on advanced scenario modeling that incorporates external signals and internal data sources to provide valuable insights. 

2


Analytics: Harness the power

Analytics enable supply chains to gain valuable insights from data that contribute to better decision making. Insights from data analytics can assist supply chains in identifying opportunities, upgrading processes, solving complex problems, and improving outcomes.

Data can be analyzed with a variety of tools, from AI algorithms and predictive analytics to digital twins. Supply chains rely on AI algorithms to optimize and improve efficiency. With digital twins, supply chains can run test scenarios before implementing the best one. Predictive analytics helps in accurately forecasting future demand and predicting a supply chain’s inventory. 

3


Planning: Make it transformative

Supply chains use planning to control what can be anticipated, mitigate what cannot be, and to generate next-level performance. CSCOs need planning for timely cross-functional decision-making with company business leaders. Working together, leaders can optimize inventory, capacity, planning, and network strategies, all while relying on low touch planning to reduce manual intervention.

Planning meets AI to transform into integrated AI planning. By leveraging an AI portfolio that encompasses the different forms of AI, including discriminative, generative, and prescriptive, supply chain planners can forecast demand, instruct how to address equipment issues, and assist in shipping product by determining the optimal shipping approach to minimize cost and maximize service. For the back office, integrated AI planning improves operational workflows, enhances visibility, and provides real-time information for better decision-making and process automation. 

4


Execution: Make it happen

Visibility, analytics, and planning come together in the execution phase. Execution requires an orchestration of activities, from effective planning and building a trusted supplier network to analytics and AI that equip you to make data-driven decisions about your supply chain. You can make it happen by following these six steps: 

  • Strengthen relationships with key suppliers to build a trusted network. Collaborate using metrics and data, as well as communications. 
  • Identify and evaluate your suppliers, including those beyond Tier 1, to ensure a better understanding of your supply chain network’s strengths and weaknesses. 
  • Address weaknesses in data synchronization or outdated systems, including audit processes. Assess and track the movement of goods throughout the entire supply chain, from shipping and warehousing to transportation and final delivery.
  • Plan effectively to predict, recognize, and mitigate risks and disruptions including weather-related incidents, conflicts, labor disputes, or other unforeseen events.
  • Leverage emerging technologies such as AI, low-code, and no-code platforms to safeguard your supply chains from potential disruptions.
  • Deploy AI to achieve incremental value. Utilize this technology to optimize asset utilization, enhance worker productivity, and drive process improvements. 

By following these six steps for execution, keeping visibility as an essential goal, harnessing the power of analytics and AI, and placing planning front and central, you will have built a stronger supply chain resilient to disruptions and steadfast in its duties despite a rapidly changing business landscape.

Emerge stronger in uncertain times

Supply chains are currently operating in uncertain times. Disruptions and bottlenecks at ports rule the high seas, leading to delays in shipments and higher fees. Transformation fleets encounter bad weather and road work wherever they go. Geo-politics and cyber incidents seem to happen with greater frequency.

Supply chains must respond to meet these unique challenges and emerge stronger. By focusing on planning, leveraging tools like AI and analytics, making inroads on visibility, and keeping the focus on execution, your supply chain will have what it takes to make smarter decisions faster.

Take a deeper dive into our supply chain insights

What sets apart good from great supply chain leaders? It's their ability to identify not only broad but also deeper opportunities for enhanced visibility and better decision-making.

KPMG ranks #1 for quality AI advice and implementation in the US

According to senior buyers of consulting services who participated in the Source study, Perceptions of Consulting in the US in 2024, KPMG ranked No. 1 for quality in AI advice and implementation services. 

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Service
The new imperative: Supply chain transformation
At a time of extreme disruption, help future-proof your supply chain with KPMG

How KPMG Supply Chain Services can help

KPMG offers a technology-enabled planning transformation journey supported by a proven six-layer operating model that ensures accurate segmentation analysis and includes a demand plan and a data assessment. We offer an AI portfolio, a set of algorithms for supply chains, from augmenting your workforce and optimizing costs to making inventory management more efficient and assisting reguatory compliance. Let KPMG guide, accelerate, and de-risk your supply chain with purpose-built assets and accelerators designed exclusively for supply chain operations.

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