KPMG Prepares Report on the Future of the Supply Chain

KPMG has prepared the "Future of Supply Chain" report based on survey results from 300 global supply chain professionals from sectors including retail, manufacturing, healthcare/life sciences, technology, energy, electricity, public utilities and telecommunications. The research covers important information and data under many headings including current supply chain operations, how managers plan to respond to changes, accessibility of supply chains, automation levels, utilization of metaverse and digital twins, and use of cryptocurrencies in supply chain operations. According to the report, over the past few years, supply chains have been tested in many ways worldwide and have now transformed into more resilient structures, but challenging work for supply chain leaders is not yet finished. The report highlights a total of six new areas - three main areas to be focused on within one to two years and three areas to be focused on within three to five years.

KPMG Turkey Industrial Manufacturing Sector Leader Murat Palaoğlu made the following comments on the subject;

"Supply chain leaders must build ESG agendas while focusing on the potential of digital ledgers, sectoral transformations and even the metaverse, stay informed on automation and prepare for the future workforce. The opportunities offered by digital solutions in supply chain management in terms of both optimization and carbon footprint must not be missed. Leaders fighting numerous macro forces such as new customer demands, rising costs, decarbonization and keeping pace with competitors need actionable strategies to manage emerging trends. Our report that sheds light on the future of the supply chain under six main headings by revealing the current state of supply chains and the problems leaders face every day also provides leaders with useful information and data to draw up these strategies." [caption id="attachment_156781" align="aligncenter"] Murat Palaoğlu[/caption]

Areas to focus on in the short term

In the assessment included in the research, it is predicted that supply chain leaders will increasingly focus on environmental, social and governance (ESG) commitments, investment in advanced robotics and automation, and workforce evolution in supply chains over the next one to two years. • Sustainable supply chains: In the past, having an ESG program was a good practice, but today such a program has become a necessary component. As stakeholder demands and legal requirements increase on this subject, companies believe supply chains will play a leading role in meeting ESG targets. Supply chain visibility is now of vital importance. • Advanced robotics and automation: Supply chains are becoming increasingly automated with robots picking, sorting and packaging and algorithms planning purchases alongside numerous other tasks. Leaders must stay one step ahead to truly be competitive - whether they collaborate with robots or use generative artificial intelligence. The report emphasizes there is no time to lose when it comes to automation, noting that 37% of participants are already using automation to replace warehouse labor. • Future workforce: It was expected that the "rise of robots" would leave people unemployed. Instead, we are seeing humans and robots collaborating in new and innovative ways for more efficient and effective supply chains. According to the research, leaders need to create an ideal hybrid workforce by maximizing robot technologies while leveraging the unique capabilities of people. As the supply chain workforce changes, 62% of leaders foresee workforce shortages.

Areas to focus on in the three to five-year period

In the report, it is predicted that over the next three to five years, supply chain leaders will focus on the use of distributed ledger technologies (DLTs) and digital currencies (DCs) for security and traceability of cross-border commercial activities; how supply chains will be transformed with technological innovations; and the potential of the metaverse. • Distributed ledger technologies and digital currencies: DLTs such as blockchain, while largely viewed as an alternative to traditional currencies, may have a more important future as guarantors of trust in global supply chains. For this reason, leaders need to focus on how DLTs and DCs can provide traceability and more secure global trade. Since only 55% of leaders describe their supply chains as stable and well-positioned for the future, DLTs and DCs could be part of the solution. • Sectoral transformations: Changes faced by different sectors will likely directly affect supply chains, so leaders will also need to adapt to these changes. In the healthcare and life sciences sector, uninterrupted supply of medicines is becoming important, while retailers need to create seamless digital and physical life experiences. In aviation and defense, geopolitical issues are leading to greater scrutiny of supply chains. On the other hand, as demand for niche services increases, 67% of leaders predict it will become more difficult to meet customers' speed expectations. • Metaverse: Regardless of its entertainment potential, supply chain leaders are increasingly excited about the metaverse's potential for designing and monitoring supply chains, identifying vulnerabilities and delivering services in real time. In fact, 94% of survey participants show an optimistic attitude about digital twins adding value.