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.