Global

Details

  • Service: Audit, Advisory, Management Consulting, IT Advisory Services, Risk Consulting, Internal Audit, Risk Consulting Services
  • Type: Business and industry issue
  • Date: 6/25/2013

Conflict minerals and beyond - Part three: Optimizing the supply chain 

This KPMG report, “Conflict minerals and beyond – Part three: Optimizing the supply chain”, is the third in a four-part series that covers Section 1502 of the Dodd-Frank Act. The purpose of this report is to show how companies can optimize the supply chain and the potential benefits and challenges of doing so. It is intended to be useful for companies that have to obey other supply chain regulations, of which there are a growing number worldwide.

As companies extend their supply chains to every corner of the globe, they become vulnerable to risks that are difficult to manage. By optimizing the supply chain, companies may achieve their long-term strategic goals of reducing costs, enhancing effectiveness and strengthening sustainability. KPMG member firms believe that compliance with these regulations is not just a box-ticking exercise, but a matter of developing and adhering to a strategy.


Companies should go beyond compliance and integrate the management of the supply chain into their strategy by measuring performance based on the yardsticks of sustainability as well as financial goals. Given the trends, the smart approach is to keep ahead of competitors and proactively optimize the supply chain. Supply chain optimization requires many parts of the organization to work together, and the tone must be set at the Chief Executive and Board level.


The objective of this publication is to highlight the advantages of a transparent and better managed supply chain; it also outlines the following key points that companies should keep in mind:


  • By successfully managing risks and optimizing the supply chain, companies may achieve their long-term strategic goals of reducing costs, enhancing operational effectiveness and strengthening sustainability.
  • A company should consider a strategy to optimize its supply chain to meet current and developing legislative requirements.
  • A company that treats its suppliers as an extension of its business in a socially and environmentally responsible manner may benefit from greater longevity, quality, and reliability in its products.
 

Share this

Share this