Actionable insights into your supply chain – KPMG

Author: KPMG Canada

How do you feel about your suppliers?

Knowledge is your strongest shield against the volatility of hidden risk. With so much potential damage on the line, understanding what to look out for and what practices to avoid is paramount to maintaining good standing with your organization’s stakeholders and protecting your company from the suppliers’ risks inherent to the COVID-19 situation.

Immediate actions

• Focus the response team to facilitate information flow with upstream and downstream partners, and inform customers who will be impacted.
• Map criticality of sourced materials to high-value products and revenue streams. Identify the components with the highest impact on revenue.
• Review contracts with key suppliers to understand liability in the event of supply shortage.
• Determine business exposure by identifying current and buffer inventory, building tier-transparency and short-term action plans.

COVID-19 rapid supplier risk assessment

• Risk segmentation and associated criteria should be developed to group suppliers in a manner that is in alignment with the defined risk tolerance and profile to clearly delineate risk severity levels, from an operational, financial, and compliance standpoint.
• Viability risk monitoring provides powerful oversight with a dashboard that analyzes and projects vulnerabilities across all relationships, so you can act quickly, through receiving timely insight into the risks facing your company.
• Contract performance management solution leverages holistic, cross-functional advisors and technology to provide visibility into where value leakage is occurring, and the steps being taken to correct it.

Immediate action is required for supply chain and finance stress testing as you restart your supply chain

• Immediate visibility in the P&L based on the different supply and demand forecast scenarios
• Analysis whether suppliers are still able to meet free trade agreement rules of origin given supply changes that may had to be made to determine to access whether duty expense and landed costs will be impacted
• Access to our global markets insights database, AI algorithms and extensive research team, which provide you with short,  medium and long-term market perspectives and innovations  during COVID-19
• Extensive commercial and supply chain experience provides you with fit-for-purpose recommendations on the future supply chain and network design principles

Acting fast in rapidly changing times is imperative to get ready for the future. This will help your company to exceed performance expectations during the COVID-19 crisis, but will also allow you to build resilience in the future, most likely coming out stronger than before.

To learn more, download the ‘Actionable insights into your supply chain’ PDF or consult our recent webinar on Restarting your supply chain post-COVID.

Reach out to a KPMG advisor for more details:

Nilesh Kujur, Director
Advisory Services, KPMG in Canada
nkujur@kpmg.ca

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