United Kingdom

Supply Chain Optimisation 

Supply chain excellence can have a significant impact on an organisation's financial performance. The inability to move the right items to the right place at the right time can cripple organisations, damage relationships and erode margins. 

We help our clients to enhance the efficiency and effectiveness of their supply chain, reduce operating costs and transform operational processes.

What's on your mind?

 

  • Need to significantly reduce costs, whilst at the same time creating a more responsive, agile supply chain
  • Ambitious growth but requiring a lower cost base
  • Rapidly changing sales or volatile markets with complex demand chains
  • Consolidation, downsizing, mergers or acquisitions
  • Increasing need for global sourcing in order to compete effectively
  • Need to ensure security within the supply chain and minimise risk

 

Bringing you peace of mind

 

Although the characteristics of industry sectors will differ, many of the key supply chain challenges are common across all sectors. We work with our clients to help them:

 

  • Develop lean, agile and cost effective supply chains
  • Understand the profitability of products, customers and routes to market
  • Manage inventory and supply chain working capital
  • Identify and mitigate supply chain risk

 

Through our Supply Chain Maturity Matrix we enable clients to determine the current maturity level of their organisation and the future desired level of maturity and to compare current and target levels within and across industry sectors.

What's in it for you?

 

  • Improved operating efficiencies
  • More flexible operating and supply chain processes
  • Simplified balance of supply and demand, to increase visibility and reduce complexity, thereby enabling more effective decision making
  • More accurate demand forecasting, leading to improved customer service levels whilst maintaining lower overall inventory levels
  • 20 percent - 30 percent reduction in inventory
  • 15 percent - 20 percent reduction in logistics costs

 

Why KPMG?

 

  • We bring to our clients a complete supply chain perspective, an ability to help tailor approaches and a global network of subject matter professionals.
  • We adopt a fresh, objective leading practices perspective derived from high-performing companies across many industry sectors including, CPG, Oil & Gas, Utilities, Diversified Industrials and Telecommunications
  • Globally consistent analytical tools, frameworks, and project management capability to meet demanding performance requirements - we understand the issues in the supply chain

 

Case Study

 

Major global provider of lubricant solutions - redesign of supply chain

Issues facing the client:

 

  • A large and fragmented base of logistics providers; limited evidence that this spend was being leveraged across divisions
  • A large number of warehouses across Europe, with some warehouses exclusively used for the products of one division only
  • A disproportionately large number of indirect employees appeared to be employed in the logistics function when compared to comparator data, given that some logistics operations had already been outsourced
  • Multiple routes to market for products, with little visibility of the cost of these operations

 

The KPMG project team identified savings opportunities in the areas of network optimisation, inventory carrying cost and supplier rationalisation through redesigning the network to a regional distribution model; reducing inventory levels and managing a programme of supplier rationalisation.

We helped the client to identify US$41-$76 million in total cost saving opportunities, of which US$37-$68 million was in the areas of logistics, packaging and indirect procurement.