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Thought leadership
The Power of
Procurement
A global survey of
Procurement functions
kpmg.com
Power of Procurement
Reports on a global
procurement
benchmarking survey,
carried out in association
with CPO Agenda.
Demand Driven
Supply Chains
Aligning planning,
procurement, and
replenishment
processes to actual
consumption and
consumer demand.
Demand Driven Supply Chains
If you could remove all of the information latency in your
supply chain, what would you change? Answer: Everything!
Demand driven supply chains align
their planning, procurement, and
replenishment processes to actual
consumption and consumer demand.
Becoming demand driven allows a company to
be more responsive to consumer needs while
increasing profitability.
Supply chains are becoming more complex as
companies expand their geographic footprint,
increasingly leverage outsourced manufacturing, and
expand their channel partner network. Supply chain
executives are looking for ways to obtain real-time,
transparent visibility across all tiers in the supply chain so
as to better align supply with actual demand to help reduce
supply disruptions and capital expenses.
Becoming demand driven
A demand driven supply chain involves transforming the
traditional supply chain into an integrated multi-tier supply
network—eliminating information latency and unnecessary
touchpoints, thereby reducing operating costs and improving
profitability and customer service.
Key characteristics
Key services
KPMG provides supply chain services that help business:
• Move from supply chains to supply networks
To be demand driven, the traditional supply chain needs to be
managed as a highly integrated supply network in which all tiers of
partners have visibility to changes in the end-consumer demand,
and all material movements and inventory decisions are driven by
demand signals as close to the consumer as possible—capturing
actual consumption and changes in demand patterns.
Factories
3 Days
• Product movements driven by actual demand/consumption
OEMs
• Real-time demand/supply visibility across partner tiers
Consumers
• Inventory managed to dynamic target operating levels
• Early identification of demand/supply continuity issues
before they impact production
• Single demand signal shared across partner tiers –
one version of the truth
Distributors
T1
Suppliers
T2
Suppliers
Legend:
Material Lead
Time & Flow
Information Lead
Time & Flow
Demand Driven Supply Chains
Supplier Category
Management
Driving value through
the procurement
organization.
High Impact
Procurement
Operating
Models –
A Survey of Global CPOs
kpmg.com
FUTUREBUY:
The Future of
Procurement
25 in 25: Delivering procurement
value in a complex world
kpmg.com
High Impact
Procurement
Operating Models
Trends in target
operating models
and their impact
on procurement
performance.
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through
complexity” are registered trademarks or trademarks of KPMG International. NDPPS 203548
Strategic Integrated
Business Planning
How companies to view
their business with a
holistic lens focused
on accurate long-term
strategic planning.
Advanced Inventory
Optimization
Drive significant working
capital and customer
benefits through
advanced inventory
optimization.
“What struck me about KPMG was their ability to support the full spectrum of
consulting services—from strategy through execution to sustainment.
They brought thought leadership and relevant insights to the program,
and were willing to roll-up their sleeves to work alongside our people
to make the vision real.”
– VP of Sourcing at a leading Financial Services firm
“KPMG has been a true business partner and critical to the success of
our Operations transformation.”
– Supply Chain Excellence Program Manager, Major Power & Utilities Company
Futurebuy – The
Future of Procurement
Delivering procurement
value in an increasingly
complex world.
Contact us
John Cummings
Global Customer and
Operations Leader
214-840-2130
[email protected]
Spend Matters’ Top 50 Providers to Know
in 2014, KPMG has demonstrated market
leadership as one of the premier global
advisors in the procurement space.
Samir Khushalani
Americas Practice Leader
Operations Advisory
713-319-3570
[email protected]
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG
name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. NDPPS 364062
Implementing
the value chain
of the future
KPMG’s Operations Advisory Practice
Supporting the Operations Agenda
Our mission
Our vision is to help our clients create breakthrough competitive advantage by
designing and implementing the value chain of the future; one that is purpose built,
globally integrated, demand driven, lean, agile, and resilient.
Leveraging a global network of practitioners and proprietary tools
and methods, our innovative offerings are tailored to fulfill the
Operations (COO/CSCO/CPO) agenda and drive sustainable impact.
We help drive structural improvements that accelerate growth, lower costs,
improve services, and reduce risks. We partner with our clients throughout their
transformation journey, delivering sustainable value from strategy through results.
What we do
What you get from KPMG
Sustainability
of benefits
through structural
improvements and continuous
knowledge transfer
1.
O
pe
co rat
i
r
st por ona
ra at liz
te e
e
gy
Operations
Agenda
e
ursu
4. P nable
ai
ion
sust imizat
opt
A focus On Total
Value Delivered
across end-toend operations
cost
Collaborative
Working Style
from concept to
realization of your
future state vision
»» Configure supply
chains to achieve
lower cost
»» Engineer planning and
execution to optimize
performance
»» Implement structural and
continuous improvement
programs
e
ag isk
an nd r nce
M
5. to-e plia
- m
d
en d co
n
a
2. Tr
a
sup nsform
ply
ch
for grow ain
th
Our practice
Our Operations Advisory practice has a global footprint comprised of over 900
seasoned operations specialists located in all major geographic markets. These
practitioners have deep, pragmatic knowledge in every major operations discipline,
allowing us to provide objective advice and compelling insights, and deliver end-toend solutions with proven results to our clients. We leverage our industry leading
practices with an eye on appropriate controls to optimize efficiency and manage risk.
»» Deliver compliance
requirements and manage
end-to-end risk
»» Build flexible and resilient
supply chains
»» Measure, monitor, and
govern Operations
performance
3. Build after-sales
growth engine
»» Define after-sales parts
and service strategy for
dealer and customer
channels
Driving value for our clients
Launched an enterprise-wide supplier risk
management program for a financial services firm
»» Align supply chain
and procurement
strategies to
corporate strategies
»» Create supply chains
to produce value and
innovation to support
corporate growth
goals
»» Profitably enter new
markets or channels
»» Deliver differentiated
customer experience
»» Adopt analytics to
drive revenue lift
»» Effectively
collaborate with
customers and
channel partners
»» Deliver additional
revenues and
profits through
growth and loyalty
programs
Genuine Function
Insights
harnessed from
practitioners’ experiences
and our research findings
Global Presence
via our vast network of
professionals in over
150 countries
Through our suite of comprehensive service offerings, we partner with our clients
throughout their transformation journey from strategy through execution to results.
Change management
Consistent and
efficient access to our
global knowledge and
community of practice
Delivery
Excellence
Market-leading
approaches built from
real-world experience
across industries and
around the globe
Thought
Leadership
and Insights
Research and points
of view that drive new
ways of thinking and
problem solving
Process Optimization
»» Operations Assessment and Strategy
»» Operations Cost Optimization
»» Demand Driven Supply Chain
»» Network Optimization
»» After-Sales Market Transformation
»» SKU Rationalization
»» Operations Risk Management
»» Tax Efficient Operations
»» Integrated Business Planning
»» Sourcing & Category Management
»» Supplier Management
»» Contract Management
»» Procurement Operations
»» Inventory & Asset Optimization
»» Transportation and Logistics
»» Supply Chain Finance
Analytics and Insights
»» Spend/Supplier Analytics
»» Supply Chain Analytics
»» Advanced Cost Modeling
»» Master Data Management
Operations
Assessment
Capability Enhancement
»» Operating Model Design
»» Efficient Organization
»» Operations Skill Assessment
»» Operations Training Academy
Technology enablement
Identified 14% in cash leakage
for a healthcare organization
Reengineered a global manufacturing and distribution
footprint and designed a new operating model that
resulted in 20% reduction in total landed costs
Tax efficiency
Global
Knowledge
Risk Management
Our Global Centers of Excellence
Our Global Supply Chain CoE and Procurement CoE serve as our hubs of
functional knowledge, thought leadership, and industry insights for our people
and our clients around the world.
Strategy
Completed a comprehensive global supply chain
transformation for an oil and gas client that delivered
130% of the business case savings estimate
Developed a procurement operating
model, and executed a supply chain
transformation for a utility
How we do it
breadth of Services
across transformation,
technology, tax, risk,
and controls
Delivered sourcing savings to a
high-tech company with a 15:1 ROI
Transformed a decentralized and inefficient
global distribution and logistics function into a
streamlined center led model that identified
over $75 million in benefits
Designed supply chain processes and evaluated
technology solution combinations for a
comprehensive Supply Chain Control Tower
implementation for a consumer goods company
Identified $25 million annual savings after assessment
of fast moving consumer goods company’s existing
planning processes against leading practice Integrated
Business Planning model