Conflict Minerals and Beyond Part Three: Optimizing the Supply Chain 

Optimizing the Supply Chain

This KPMG report is the third in a four-part series that covers Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

The first report focused on developing a compliance strategy. The second report covers the transparency of the minerals supply chain. The fourth report will cover reporting and disclosure. 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.

 

The purpose of this report is to show how companies can optimize the supply chain and the potential benefits and challenges of doing so. By optimizing the supply chain, companies may achieve their long-term strategic goals of reducing costs, enhancing operational effectiveness and strengthening sustainability.

 

Key Findings

  • As companies extend their supply chains to every corner of the globe, they become vulnerable to risks that are difficult to manage. The collapse of a building containing garment factories or the explosion of an offshore oil well cause consumers, voters and their elected officials to focus anew on the risks of sourcing materials in places that are far from corporate headquarters. Section 1502 is one example of this trend.
  • 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.

 

For more information, download the full report below.

 

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