Global manufacturers are investing in risk management in their supply chains, according to a KPMG report: Global Manufacturing Outlook: Growth while Managing Volatility.
The report investigates how large industrial manufacturers are dealing with market and input volatility in a global marketplace. The report was written by the Economist Intelligence Unit, which also executed the online survey and conducted the interviews on behalf of KPMG International.
It says “Investment in supply chain risk management will continue, with a particular focus on transparency. Many organisation have already made substantial investments in bolstering their risk management functions over the past couple of years.
“Stung by the severity of the tsunami in Japan, this push will continue, with a particular focus on improved supply chain visibility, to better assess where potential vulnerabilities lie. The use of technology to improve supply chain visibility is the number-one tool that executives plan to rely on to identify risks (selected by 49 per cent of respondents).”
The report also suggests that diversification into new markets and new products will converge with a push toward input and process standardization.
More than half of manufacturers polled (55 per cent) plan to standardise production processes across sites, while nearly half (45 per cent) will move toward standardise inputs across product lines.