Manufacturers reshape supply chain

risk management in their supply chains, according to a KPMG report, titled “Global Manufacturing Outlook: Growth while Managing Volatility”, states Supply Chain Standard.

The report reveals that investment in supply chain risk management will continue, with a particular focus on transparency.

Procurement Leaders says the KPMG annual survey of 220 manufacturing executives, including 61 in the US, from global companies with at least $1 billion in revenue, reveals that 26% of the US executives will focus on top-line growth, followed by 13% saying innovation, and 12% indicating customer relationships.

To better manage volatility, 56% of manufacturers say they are reshaping their supply chain models. Standardisation is one of the key strategies, with 55% of manufacturers planning to standardise their production processes, while 45% will require standardised inputs.

Just over 40% say they will focus on cost reduction through a shortening of the overall product development life cycle.

The report also found that 39% of global respondents say they will grow through mergers and acquisitions, joint ventures and alliances; and 30% through increased production capacity, mainly in high-growth markets, reveals Quality Magazine.

"Today, we're seeing that despite an increasing set of cost challenges, manufacturers are realigning their business models to prioritise top-line growth," says Jeff Dobbs, KPMG's global head of Diversified Industrials, and a partner in the US firm.

"Companies have learned they can survive the challenges of economic uncertainty, political instability, and historic natural disasters with lean agile operating structures, enhanced risk management practices, and a focus on innovation."