Your supply chain is dying

The supply chain as we know it will be replaced by fulfillment networks purpose-built to deliver what micro-segments consumers want.

The supply chain model most companies use today – one that sequentially plans, sources, makes, delivers and handles the returns of products – is dying.

Great products are no longer enough to attract and retain customers. They are demanding a much more sophisticated brand experience – one that extends beyond just a great buying experience, to include fulfillment, returns and, in some industries, an after-market parts and services experience, says Ammon Matsuda, Managing Director of Data & Analytics at KPMG.

There are three ways in which innovation and increased competition are triggering these changes in supply chains, according to Ganga and Matsuda. Bloomberg Intelligence data and insights about supply chains – which was prepared independently of the KPMG experts generating their insights – support their contentions. Read this article to see why supply chain change is on the horizon, and the practical steps companies can take today to innovate.

Supply Chain Checklist

Ganga and Matsuda recommend that executives take the following steps to prepare to innovate their supply chains:


Develop Technology to Support New Capabilities

For a business model to be fully integrated with supply networks, you need the enabling technology and analytical capability. Examples include blockchain and the ability to build and deploy prescriptive models.


Use Partnerships More Effectively

Double down on what you’re good at. Leverage partnerships in areas outside core competency.


Ask Your Customers

A customer-centric business doesn’t wait for customers to reveal their preferences. It directly engages customers to learn how the company can delight them.

Expand Supply Chain Visibility

In order to build a supply network, you need to be able to see into not just your own supply chain, but also the supply chains of your suppliers. Often this requires significant advance planning and strategic positioning.

Redefine ROI Measurement

With many of these changes tied to preserving future relevance and viability, CFOs must develop a new tolerance for placing strategic bets, or risk being left behind.


Your supply chain is dying
The practical guide to disruption