Supply Chain visibility crucial to Global Manufacturers

June 7, 2015 Ken Klaver

ControlPay. freight audit

Manufacturers are operating in an environment of disruptive complexity, where factors such as intense competition, pricing pressures and new technologies are forcing companies to evaluate business models and growth strategies, that is the main conclusion of the 2015 KPMG Global Manufacturing Outlook (GMO) survey (386 senior manufacturing executives).

Half of all manufacturers say their strategic focus is innovation-led. 32% Cite the development of new products and R&D as a top strategic priority. Thirty percent say the biggest challenge for their organization is R&D inefficiency.

More than three-quarters of all respondents say that partnerships will form the basis of innovation for their company. Almost half say they are adopting new manufacturing technologies to drive innovation.

“The focus on new product development, collaborative innovation and speed-to-market all require new strategies and business models. If manufacturers hope to grow by driving new innovations to market, they need to focus on improving the agility and integration of their supply chain models,” says Jeff Dobbs, KPMG’s Global Head of Industrial Manufacturing.

Supply Chain visibility

When looking at the supply chain of global manufacturers, remarkably, concerns about supplier performance and capacity remain very high, meanwhile visibility into supplier organizations remains surprisingly low. Behind the need for greater flexibility, supplier performance and supplier capacity are cited as the second and third biggest supply chain challenges globally. Yet just 14 percent of respondents claim to have complete visibility.

Achieving the appropriate level of supplier visibility is key, states the report.  Along with investment into greater technology enablement. The bigger challenge, however, will come from creating the right supply chain strategy to meet future product requirements and demand without driving up costs.

Practical insights and advice for manufacturing 

KPMG Global Manufacturing Outlook (GMO) survey

The Global Manufacturing Outlook 2015 is based on a survey of 386 senior executives conducted by Forbes on behalf of KPMG International completed in early 2015. Respondents represented six industries: Aerospace and Defense, Automotive, Conglomerates, Life Sciences - Medical Devices, Engineering and Industrial Products and Metals. Fifty percent of respondents held C-level positions and a third represented organizations with more than US$5 billion in annual revenue. Respondents were distributed evenly between the Americas, Europe and Asia. Click here to read the full report.

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