Transcript
Mary Rollman: Hello, my name is Mary Rollman and I lead supply chain at KPMG. Thank you so much for listening and giving me the opportunity to introduce this podcast, its purpose and how it will be beneficial for you.
In this series of supply chain discussions and all of the episodes to follow this one, you'll learn about the KPMG supply chain organization, our perspective on business and supply chain trends, our latest thought leadership, and the predictions about what will happen to supply chains and supply chain organizations. You'll also get to meet the people that are the real thought leaders in supply chain.
The KPMG supply chain is a very unique team of people that understand the role that supply chain plays in the management of the business. We're an end-to-end supply chain service provider across plans, source, make, deliver, service, and we do people, process, technology, and strategy work. We focus on the business of supply chain, the business and the financial metrics that drive supply chains in an ever-changing environment. Supply chains can not only survive, but they can thrive.
Let me give you a walkthrough of who we are. The first question I usually get is, what are the services that your KPMG supply chain organization provides? I like to answer that as what makes us special. So let me explain first how we're structured, and then I'll go into each one of these in a little more depth.
We have three different towers. We've got strategy, planning, and execution. Let's start with strategy. Strategy is a much more diverse portfolio than the other two. It includes a range of different types of services. Starting with supply chain assessments, our assessments allow us to help our clients identify where there are opportunities for real business value. We look for cost takeout opportunities and improve efficiency opportunities. We have operating model and product flow assets that help us help our clients understand the structure of their supply chain and how products should flow end to end, helping them identify what the most optimal flow is and what can be done differently. We have advanced analytics capabilities. Our capabilities in this space are significant. Using analytics and more advanced algorithms to address operational challenges has actually yielded millions of dollars for our clients.
We also have heavily invested in ESG as regulations continue to increase around the globe. We support our clients as they manage through this new wave of regulations and really help them focus on the greater good of what ESG intends to deliver. Finally, within our strategy group, we are uniquely qualified to lead our clients through simple to complex buy-sell transactions.
Whether organizations are selling off part of their business or preparing to integrate, the work for supply chain can extend for years beyond day one. We help our clients get very precise regarding the plan with the goal of moving at a pace that drives business value.
Question two, with all of that, remind me what other aspects of supply chain at KPMG are. I'm glad you asked that. We still have planning and execution to go through. We have a very well decorated planning offering with a strong positive review from a range of different analysts and sources. We implement software solutions that support demand planning, supply planning, collaboration. Our SNOP and SNOE processes are constantly being used for analyzing the health of our client’s business processes.
Those same processes, SNOP and SNOE, are updated with new thinking constantly. Our operating model offering also expands into the planning area. Our clients are always asking about the best structure and size of planning. Planning is very unique in supply chain because it's really the function that's intended to bring together a very cross functional business process that expands from customer all the way back to supplier and truly everything in between.
And finally, execution. We have a strength and a depth of experience and offerings across distribution, logistics, warehouse, customer service, order fulfillment, transportation, procurement, everything from assessing options for the warehouse network to selecting three PLs, four 4PLs, and implementing WMS and TMS systems to enable these critical business processes.
As a side note, we do partner very closely with our tax colleagues when examining the flow of goods. We help clients find the most optimal flow of goods for their own tax advantage.
And then, similar to planning, our operating model capability is also leveraged in execution as well. At points specifically to customer service in order to cash. This space is typically a great source of opportunities for our clients and we really can help them find value in the right structure of customer service and the back office activities so that they can improve cost and service simultaneously. And finally, the KPMG operations COE focuses on the four walls of manufacturing and warehousing with a focus on productivity improvements, lean methods, and operational excellence.
And question number three, at KPMG, what do you see as the most significant trends in supply chain? So I would say at KPMG, we certainly do have a passion for our clients and for our client’s business. We provide a range of services, but we're also constantly looking to the market. We're talking to experts, examining data, and I think there are three trends that are going to change the world of supply chain. The first one is artificial intelligence (generative AI), advanced analytics, and digital. I'm not going to talk specifically about each one of those methods or new tools or new ways, but really the impact that it's going to have on the structure of the supply chain organization, the talent that's going to be required, the change in roles and responsibilities, and frankly, the change to the overall structure and operating model.
We're really thinking at KPMG about how the use of these new tools can change the roles that have traditionally existed within supply chain and whether those roles can be deconstructed and then reconstructed in a shape that leverages these new tool sets of AI, generative AI, et cetera, to do supply chain in a very different way.
Trend number two, it's what I call the new nearshoring. It's really how companies are looking to define or redefine their supply network to reduce the risk of supply to critical markets and how they do that in a very tax -advantaged or cost effective manner. But it's not always just cost, it's also improving the resilience of the supply chain and ultimately reducing the risk to supply chain. Nearshoring is definitely a trend. And when it comes to how you can actually employ a China or China plus one type of supply network, in light of some of these challenges, clients are really seeing an opportunity to take risk out of the supply chain.
And third, I point to pure automation, automation and robotics. And this isn't only in the physical movement of goods, and the end-to-end supply chain, but it's the planning or back office activities that happen to enable the flow of goods. We look to see how you can use automation to reduce the human interference on very repeatable and standard business processes. Where does the human element actually reduce process adherence and how can you use these tools to actually improve productivity, improve efficiencies and take cost out of the system?
My final comments on trends and ultimately these recent trends do not actually replace the basics of supply chain. Supply chain leaders today actually have a much more complex mission. The range of responses to very traditional supply chain issues is increasing. There are so many options to consider. All of the possibilities are viable. We like to work with our clients to define what is best for them and their organization, ultimately personalizing their approach or their solution.
And in closing for today's podcast, I want you to remember that at KPMG, we are driven by a passion for our clients, their business, and most importantly, their supply chain. I want to thank you for taking the time to listen today. Please keep an eye open for a series of podcasts that will be coming your way with additional episodes where we can dive deeper into our services, trends, and you're going to get a chance to meet more of the leaders that are part of the supply chain organization at KPMG.
For more information about us, you can check us out at kpmg/supplychain. And that's all I have for you today.
