• Industry: Retail, Food, Drink & Consumer Goods
  • Type: Business and industry issue, Survey report
  • Date: 6/12/2013

Operations Issues 

There is continued focus on operations, to reduce cost and increase profit margins through enhanced supply chain management, improved visibility and increased collaboration, as well as a drive towards greater data collection and analytics through operations technology.


  • Supply chain management and procurement - many companies have a substantial opportunity to boost performance, agility, and resilience by improving visibility across their supply chain network. In another recent KPMG survey of manufacturing executives nearly half of the companies said they lack visibility beyond their Tier 1 partners.
  • Retailers and suppliers plan to increase collaboration - when asked about areas where retailers and suppliers should collaborate more, the overarching sentiment is toward increased partnership across the board, with nearly unanimous agreement that greater collaboration is required.

Figure 1

  • Operations technology - consumer data collection and analytics is one of the top three expected marketing strategies for 31 percent of executives. Further, 34 percent of executives cite that data collection and analytics will be their foremost operations technology approach to improve sales and profits – the most frequently cited strategy overall. However, all issues pertaining to technology present at least a moderate challenge for nearly three-quarters of companies and a major challenge for about one-quarter.
  • People/Human Resources - is another top issue as labor cost and availability of talent poses a significant challenge, particularly in emerging markets. It may be that as these emerging economies are seeing growth and economic prosperity, they are struggling to keep up with human capital to foster continued growth. Brazil, for example, was unprepared for the rapid growth of their market in recent years.

Figure 2


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Top mind survey 2013