• Industry: Building materials, Industrial Manufacturing
  • Type: Business and industry issue
  • Date: 16/09/2010

Global Manufacturing Outlook

Global Manufacturing Outlook
This series looks at how industrial manufacturers are adapting their business models and supply chain tactics to address the changing global economy.

Global Manufacturing Outlook 2010: Relationships, Risk, Reach 

The downturn has not led to uniform changes of the world’s large industrial manufacturing firms’ supply chains, but it has encouraged them to experiment with a variety of approaches. KPMG’s survey highlights how those innovations that prove their value may shape the sector’s supply chain strategies in years to come.

Key insights

  • A clear majority of leading companies still see cost as their main priority while managing supply chains, despite emerging evidence that excessive focus on cost has damaged relationships.
  • Companies rating their supply chains as above average are establishing longer-lasting deeper partnerships with a smaller number of suppliers.
  • Companies should consider how a better understanding of risks could lead to an exploitation of opportunities.
  • Use of a regional supply base to shorten the supply chain in combination with sourcing from China and India to optimise costs while leveraging an expanding local talent pool in those countries.
  • Case studies featured with industry leaders include Philips, Rolls-Royce, Tata Chemicals, U.S. Steel and Leggett & Platt.

Industrial Manufacturing

KPMG can help manufacturing enterprises respond to key issues such as innovation, lean manufacturing, time to market, quality and climate change.

Building Materials

Our services focus on assisting our clients to address key issues facing the building materials sector.