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Supply Chain Agility:

Managing Change
A study of supply chain maturity
November 2012

On face value, little seems to have changed over the past
twelve months. The global economy continues to lurch from
one crisis to the next, input costs remain painfully high,
business activity stubbornly depressed, and growth even in
the emerging markets challenging. Some indices have only
eroded over the last year business confidence is down,
volatility and uncertainty is up, and the debate over the
Eurozone crisis seems never-ending.

Indeed, our firms experience and research tells us that the

strongest supply chain organizations are those that are using
this time to better position their businesses for growth. Some
are focused on driving true collaboration across the supply
chain and integrating their Sales & Operations Planning
(S&OP) across the end-to-end supply chain processes. Others
are adopting new, low-cost technologies and operating
models to enhance transparency and facilitate collaboration.

Against this backdrop, KPMGs network of member firms

supported by the Chartered Institute of Logistics and
Transport (CILT) once again cooperated to find out how
supply chain directors are managing in this uncertain world
and to gauge the level of supply chain maturity in certain
markets and industries. To deliver even greater insight this
year, we expanded our research to include some of the key
markets in Europe and the Americas.

We believe that this is no time for battening down the

hatches and weathering the storm; those that do will emerge
only to find that opportunity has already passed them by.
Rather, this is a time for supply chain directors to take action
to help their organizations prepare for growth by developing a
more agile and responsive supply chain.

What we found was that, whilst cost and profitability has

come under intense scrutiny, much work still remains in a
number of areas, particularly in understanding the cost to
serve and the impact of new customer channels. Supply
chain directors also said they were grappling with demand
volatility; those with more mature supply chains also
demonstrated that they were starting to take measures to
develop stronger collaboration with their suppliers and
customers in order to improve planning and reduce

We would like to thank all of those individuals and

organizations that participated in our interviews. By sharing
your experience and providing valuable insight into your
supply chain operations and strategies, you have played a key
role in helping KPMG and the CILT to further evolve this
annual benchmark survey of supply chain maturity.
We hope this report helps supply chain leaders and
corporate executives to better understand the
changes taking place in the market and the
opportunities available to address the challenges
posed, and as a result work to achieve more
agile, efficient, and resilient supply chains.

But there was one theme that held across nearly all of our
interviews: supply chain directors need to focus on bringing
agility to their supply chains, not only to manage current
volatility in the markets, but also to put themselves in a
competitive position once the long-awaited upturn finally

Andrew Underwood
Partner, Supply Chain
KPMG in the UK

Steve Agg
Chief Executive
Chartered Institute of Logistics
and Transport (UK)

Executive Summary

Key findings Relentless focus on cost and profitability

Case Study British Sugar plc Enhancing collaboration to deliver value

Key findings Redefining the meaning of LEAN

Key findings Coping with demand volatility

Case Study Kuehne + Nagel (KN)


Supply Chain Trends


Case Study ZIM Integrated Shipping Services


Supply chain in the cloud


Focus on talent


Quantitative Findings
Quantitative Analysis


Supply Chain Agility: Managing Change | 1

Executive Summary
It seems to all come down to volatility: Economic
volatility (the Eurozone crisis and anemic economic
growth) compounded with political volatility (elections
in the US and on-going turmoil in the Middle East) have
led to business volatility (bankruptcies, insolvencies and
increased regulation) and supply chain volatility
(demand fluctuations and gyrating input costs). Thats a
lot of volatility.
It should come as no surprise, therefore, that KPMG's
interviews indicate that supply chain directors are now
increasingly focused on those activities that help them
reduce the impact of volatility, enhance flexibility and
drive out costs. And while some seem to still be taking
short-term actions in order to weather the storm,
others are pursuing new approaches and reorganizing
their operating models to turn volatility into opportunity.
By comparing the results of the 2012 interviews with
those from last year, we noted three areas in particular
that supply chain directors and corporate executives
were particularly focused on:

Identifying opportunities to squeeze further costs

out of the end-to-end supply chain to drive
profitability; and understand the true supply chain
cost to serve.

Developing more effective responses to demand

volatility in order to reduce fluctuations and reduce

Reorienting their operational processes with a

'LEAN flavor' to enhance flexibility while maintaining

Our interviews also uncovered a number of emerging

and continuing trends that are influencing the supply
chain environment. Some organizations are moving
towards globally integrated Sales and Operations
Planning processes to create more alignment across
the supply chain, while others are setting up shared
service centers to centralize order taking, financing,
logistics planning and elements of logistics execution.
More revolutionary still will be the widespread adoption
of cloud services within the supply chain.
Overall, our analysis of the interviews reveals that
supply chain maturity has generally increased, though
some areas such as supply chain risk, cost to serve
analysis and sustainability still seem to be slow to
develop in many sectors and geographies. In part, this
may be due to challenges recruiting and retaining skilled
operators. Indeed, across almost all of the markets and
industries we interviewed, we found that high-quality
talent was a scarce resource.
While supply chain maturity levels have remained
broadly stable when compared to our 2011 results, our
interviews revealed that respondents are re-evaluating
their maturity in key functional areas based on the
lessons learned over the past year of supply chain
challenges. Looking across the sectors, however, we
find that participants from the Diversified Industrials,
Consumer Packaged Goods (CPG) and Logistics sectors
tended to demonstrate the highest levels of supply
chain maturity overall. Participants reported the highest
overall maturity in their capabilities around Customer
Relationship Management and Supplier Relationship
Management, but were less optimistic about their
maturity in Sales & Operations Planning, Working
Capital and Supply Chain Risk Management.

2 | Supply Chain Agility: Managing Change

Key findings
Relentless focus on cost and profitability
Whilst cost cutting has been the rally cry for supply
chain leaders ever since the start of the global financial
crisis, our interviews show that the pressure to remove
cost has still not let up. And with cost remaining at the
top of the corporate agenda across virtually all sectors
and markets, it seems clear that the relentless focus on
cost and profitability will not ease any time soon.
What is more, costs only seem set to rise over the
coming years. One particular area of concern for many
supply chain directors has been the potential cost that
new legislation and regulation may bring to their
balance sheets. Beverage companies in Europe, for
example, are trying to grapple with how proposed sugar
taxes and bottling deposit requirements will impact
their margins. In Portugal, an increase in VAT levied on
beverages has also had impact on the final price of
products for the end customer, thereby putting
additional pressure on cost and the need to identify
changes in operating models as a way to maintain
some profitability.
Likely the most significant and far-reaching regulatory
change, however, will emerge from the development of
carbon taxes, and debate continues as to who within
the supply chain will bear the brunt of that cost: the
logistics provider, the end consumer, or the retailer
(some vocal pundits suggest it will likely be the retailer).
Many will be keenly watching in 2014 when Australias
carbon tax expands to encompass the transportation
sector to see how the system will impact costs across
the supply chain.
Other costs are also on the rise. Fuel costs remain
stubbornly high overall (notwithstanding short-term dips
due to market gyrations), while in the emerging
markets we have seen costs increase for property and

operating assets. Labor costs are also mounting most

rapidly in the East but also in the West as talent
becomes scarcer and the cost of living increases faster
than margins.
All is not as dark as it seems however; pockets of
growth do exist. For example, the emerging markets
clearly continue to shine as a region of opportunity, as
does the automotive industry which has seen
significant growth globally over the past 18 months. But
when growth returns to organizations, costs are sure to
follow, leading many supply chain directors to turn their
attention towards ensuring their previous cost cutting
measures are sustainable.
In particular, our interviews with supply chain directors
around the world highlighted a number of areas where
organizations may be able to gain greater control over
supply chain costs.

Get clear about your cost to serve

Understanding the exact cost to serve across each line
of product and channel is essential to not only cutting
costs, but increasing profitability. With this data,
organizations can start to make rational choices about
how they serve their customers and which customers
or channels may be loss-generators. But while much of
the information required to achieve this nirvana tends to
be fairly available within organizational ERP systems,
many supply chain organizations struggle to convert
this data dump into actionable programs and projects
that will translate these findings into real cost savings.

If this is true whatever the context, under the current economic pressure with
margins being so squeezed it is more and more important that companies have
a clear understanding of where the value from their operations is being created,
noted Jorge Maia Gomes, Supply Chain Specialist, KPMG in Portugal.

Supply Chain Agility: Managing Change | 3

Taking a radical view of costs

Embed finance into the supply chain

With many supply chain leaders now scraping the

bottom of the barrel to find costs to eliminate, some
are looking to innovative often even radical models
for slashing further costs from their supply chain. Take
the Consumer Packaged Goods (CPG) sector for
example, where a small but growing number of
organizations are partnering with potential competitors
to share logistics and distribution assets (particularly in
situations where both parties share common customer
bases and product characteristics). On the more
traditional end, supply chain directors are also starting
to peer further and further down the supply chain and
across the extended enterprise to find previously
unidentified opportunities for bringing down costs.

One of the common complaints aired by our

interviewees was that their finance departments were
mandating cost reductions without a clear
understanding of the supply chains cost drivers and
Key Performance Indicators (KPIs). Increasingly, we are
seeing finance analysts and managers becoming
embedded in the operations team in order to build a
bridge between the objectives of the CFO and the
realities of supply chain operations. Moreover, our
experience shows that once finance professionals are
properly indoctrinated into the supply chain world, they
tend to uncover veins of untapped cost savings that
may not have been apparent to supply chain

In Asia, we are seeing many of the multinationals step up their focus on

driving out costs, but given the diversity of the markets in the region
success has varied from country to country, noted Amrinder Singh,
Associate Director, KPMG in Singapore. Supply chain directors will
need to understand the differences in each market to ensure that their
cost cutting measures are realistic, effective and sustainable.

Photo: PRshots

Supply Chain Agility: Managing Change | 5


British Sugar Plc

Enhancing collaboration to deliver value

For the past 100 years, British Sugar Plc

has played a leading role in supplying
sugar to the British and more recently
Irish food and beverage markets. Over
this time, the organization has developed
its maturity in a number of key supply
chain capabilities such as Supply Chain
Performance and Financial Management,
Sales & Operations Planning, and Supply
Chain Strategy.
According to Andrew Lawson, Head of
Product Availability at British Sugar, the
companys supply chain success is
facilitated by the organization's growing
strength in supply chain finance. Finance
savvy supply chain people and supply
chain savvy finance people drive value,
improvements and internal investment,
and ultimately are more likely to have
successful relationships and outcomes
with customers and internal
stakeholders. I think the key challenge for
any organization is having finance
professionals with a deep understanding
of supply chain operations to a point
where they know what a good supply
chain looks like and why.
For British Sugar, supply chain operations
are increasingly seen as the lynchpin
between manufacturing and sales and
marketing. Its not just about moving
resources or products from one stage to
the next, it is also about building a bridge
between manufacturing which is cost
led and sales and marketing which is

very much price led. Supply chain is a

mixture of both and therefore plays an
important role in improving the value
chain, Mr. Lawson added.
To properly assume this role however,
supply chain professionals will need to
help their wider organizations understand
the value that supply chain operations can
provide. The challenge is that supply
chain professionals only tend to be called
to the table when something fails in their
operations, and as a result the function is
often perceived as being only as good as
their last bad event. But the reality is that
most supply chain organizations are
actually at the forefront of driving the
business forward by reducing costs,
mitigating risk and importantly fulfilling
customer expectations. As a function, we
need to become better at celebrating
those victories in a way that articulates
our value to the wider organizations we
work within.

6 | Supply Chain Agility: Managing Change

Key findings
Redefining the meaning of LEAN
Many of the supply chain directors interviewed for this
report say that they have applied LEAN principles to the
supply chain. But a common concern is that LEAN may
have actually reduced their supply chain flexibility at a
time when the business is baying for more agility to
support growth.
This indicates that organizations may not fully
understand the fundamentals of LEAN. Indeed, for
many, LEAN has become synonymous with cost
savings and efficiencies. But the reality is that LEAN is
really about enabling efficient growth. In some cases
this may indeed translate into cost savings and
efficiency; in others, however, efficient growth may
mean delivering greater flexibility to business
operations or enhancing innovation in product
In short, LEAN is about creating the right processes to
allow the organization to respond to customer demands
in order to enable growth. So if what your customer
values is flexibility, then LEAN methodologies can be
structured to supply flexibility. If customers want lower
cost, LEAN can provide this. The same can be said for
service quality, increased innovation or greater product
selection. The bottom line is that, rather than being
single-mindedly focused on cost and efficiency, LEAN is
actually more about delivering what the customer
And when viewed in this light, it quickly becomes
apparent that the supply chain director is often the
most important enabler of growth within the
organization. It is up to the supply chain director to
understand what the market values and then develop
the supply chain around those requirements. So while
marketing can make promises to customers, it is the

supply chain director that turns those promises into

So what can supply chain directors be doing to better
align the LEAN programs with the enablement of
efficient growth? To start, a series of questions must
be answered. What is your business strategy? What do
your customers value? What activities within the
business deliver on these customer demands? And,
ultimately, how can those activities be enhanced?
Based on our research, we have identified three areas
of focus that can help supply chain directors reorient
their LEAN projects to deliver customer value.

Work with the business to identify

customer demands
Whilst many supply chain leaders claim to have
implemented LEAN, few can actually articulate what
their customers value. It is critical, however, that the
voice of the customer leads the design of the LEAN
program, rather than assumptions about cost and
efficiency. This will not only require frank discussions
with the customers themselves, but also greater
collaboration across the enterprise. Indeed, when sales,
innovation, marketing, operations and supply chain are
all brought together and start talking the same language
about how they can enable the business strategy, it
quickly becomes apparent what needs to happen to
deliver customer value through LEAN.

Many supply chain leaders have been guiled into thinking that LEAN and agile
are two polar opposites that are mutually exclusive, but this simply isnt the
case, noted Dale Williams, Partner, KPMG in the UK. LEAN is, at its heart, all
about the enablement of efficient growth along whatever lines deliver the most
value for the end customer. Its as simple as that.

Supply Chain Agility: Managing Change | 7

Focus on organizational development

Many organizations implementing LEAN seem to
largely overlook the need for organizational
development to support the introduction of new
processes. organizations with mature LEAN programs,
for example, tend to find that decision making is
devolved lower into the business which in turn
demands a significant change in the organizations
leadership style. In much the same way, functional
ownership often takes a back seat to process
ownership. As a result, some of the biggest challenges
in making LEAN work are often related to leadership
and people rather than processes and flexibility.

Bringing LEAN to the extended supply

Having applied LEAN principles to their businesses,
many supply chain directors are now starting to look to
their suppliers and their suppliers suppliers to align
LEAN across the extended supply chain. But getting
suppliers to go LEAN is often much more challenging
and usually involves significant change in the way that
supply chain directors work with their suppliers. In part,
this will require supply chain directors to take a much
longer view of the relationship and behave in a way that
demonstrates integrity in order to instigate suppliers to
improve their own processes. Our experience shows
that this can be done quite simply: for example, by
extending supplier contract lengths from one year to
three years, suppliers are provided with the certainty
they crave to allow them to secure investment for
improvements such as LEAN.

8 | Supply Chain Agility: Managing Change

Key findings
Coping with demand volatility
Clearly, todays organizations are dealing with high
levels of volatility exasperated by a break-neck pace of
change. As a result, many of the supply chain directors
who participated in our research now say that
managing demand volatility has become one of their
biggest challenges.

As a result, many supply chain directors are now

looking to enhance their ability to develop real-time
forecasting capabilities to help them understand what
products are moving and through which channels in
order to become more responsive to spikes and
troughs in demand.

In truth, demand volatility is being driven on multiple

fronts. The current economic environment is an obvious
driver: as consumer sentiment rises and falls with the
tides, so too does demand. Shifting customer
preferences have also taken a toll as consumers test
out new channels, some of which only accentuate
demand volatility (take, for example, the increase in
returns that stems from customers over-ordering
through internet channels in order to try on products).

Our interviews indicate that there are a number of

areas of focus that will help supply chain directors
develop more effective responses to demand volatility.

The economy has also led many organizations to rely

heavily on promotions in order to maintain volumes and
soak up unused capacity. This, too, has led to greater
demand volatility as suppliers are either caught
unprepared or unable to meet the sudden increase in
For the most part, this comes down to suppliers not
getting promotional signals from their customers early
enough to adjust appropriately. But it is also due to the
introduction of multiple competing promotions which
make reliable forecasting much more difficult. Indeed,
whereas retailers used to develop a year-long
promotional plan that was shared with suppliers to
ensure demand could be met, we are now seeing the
introduction of flash promotions and ad-hoc strategies
that cause havoc for supplier planning and forecasting

Focus on collaborative forecasting

While many supply chain organizations pay credence to
the principles of collaborative forecasting, few go to the
extent of partnering with their suppliers in
fundamentals such as group Sales and Operations
Planning (S&OP). To reduce demand volatility, supply
chain directors must strive to drive forecasting visibility
both upstream (to their customers) and downstream (to
their suppliers) to ensure that all parties in the supply
chain can properly plan supply and demand.
Increasingly, supply chain directors have been looking
at cloud computing in order to streamline collaborative
forecasting and drive group sales and operations

Demand volatility is increasing almost unilaterally across industries, noted

Kevin OLaughlin, Managing Partner, Supply Chain and Logistics, KPMG in the
US. Even in industries that have experienced a turn-around in fortunes and are
starting to grow again, demand volatility and the ability of companies to match
capacity to demand is a challenge.

Supply Chain Agility: Managing Change | 9

Know what you dont know

Enhance supply chain flexibility

Of course, demand volatility is also tightly related to

market and supply uncertainty, particularly in situations
where scarce resources are integral to the
manufacturing process. But even commodity supplies
can often become tight in certain circumstances. As a
result, many supply chain leaders find themselves
holding more inventory than needed, often simply to
respond to unexpected rises in demand. Given this,
supply chain directors must strive to understand where
uncertainty resides in the supply chain and develop
approaches to balance security of supply against
holding inventory.

Flexibility has been high on the supply chain directors

agenda for many years. Increasingly, we have started to
see supply chain leaders shift their scope from supply
flexibility to instead focus on developing capabilities
that enhance flexibility. In some cases, organizations
have developed two-stream supply chains one to
deliver the planned and steady product flow, and the
other to manage the promotion peaks. Other supply
chain leaders have focused on empowering their
sourcing teams to make decisions and problem solve
on the fly in order to quickly respond to demand
changes in real-time.

Photo: Kuehne + Nagel

Supply Chain Agility: Managing Change | 11


Kuehne + Nagel (KN)

Helping clients achieve greater flexibility from supply

chain operations

As one of the worlds leading logistics

companies, KN works with a wide range
of global organizations across more than
100 countries and, therefore, enjoys a
unique perspective on the challenges
facing todays supply chain directors.
What businesses are looking for now is
flexibility, noted Hayden Organ, Director
of Integrated Logistics at KN. Customers
are seeking to gain a much more global
view of their supply and as a result are
finding opportunities to become more
agile by, for example, centralizing their
safety stock in a way that not only
enhances flexibility but also reduces the
costs related to storage, shipping and
This trend has led KNs Integrated
Logistics division to place increased focus
on helping their customers re-engineer
their supply chain to achieve better
service at a lower total cost. A lot of
what we do is diagnosing the customer
supply chain to understand how it is
performing in order to help our clients
develop solutions that can help them
perform better, more effectively or both,
added Mr. Organ. Businesses cant
simply sit back on their laurels; markets
are rapidly shifting, competitors are
becoming more agile, and volatility is
becoming more acute. In this
environment, organizations will need to
constantly be evaluating and adjusting
their supply chain operations.
However, Mr. Organ also notes that the
re-engineering of a supply chain can often
take on a life of its own. The challenge is
that it can become a rather perpetual and
cyclical process that seems to require
constant re-evaluation and change as the
ground moves beneath it. But there

comes a point where you need to make a

decision and implement it regardless of
the changes on-going in the environment.
Ultimately, it takes implementation to
deliver value, he added.
Organizations are also increasingly looking
to engage with a logistics partner that can
integrate all of their logistics activities into
one central point that takes control,
provides visibility, and acts as a single
point of contact for all logistics
requirements. There has been a huge
amount of activity in this space, and it has
been steadily growing since 2008 and is
one of the areas where KN has been able
to add a lot of value and flexibility to our
clients supply chain operations.
Technology is playing a key role in
enhancing that flexibility and driving
greater visibility into supply chain
operations. Mr. Organ notes the
increasing use of web-enabled IT
infrastructure that facilitates customer
interactions and operations. Our
customers want to be able to not only
interact with us over web-enabled
platforms, but also use those platforms to
share data from across the supply chain in
terms of demand and forecast data, he
added. Linking up the entire value chain
through the internet is really driving some
significant opportunity for supply chains to
aggregate and consolidate operations in
order to reduce costs and enhance
operational flexibility.

12 | Supply Chain Agility: Managing Change

Supply Chain Trends

Our interviews with supply chain directors

from leading organizations around the world
also highlighted a number of important trends
that are impacting their operations. And while
some seem to be significant challenges that
must be overcome, there are also a number of
opportunities now emerging that hold promise
for the supply chain sector.
Shared services changes operating models
It seems increasingly likely that shared services are
about to force further evolution in the supply chain and
logistics sector. According to our interviews, a growing
number of organizations are starting to move their
supply chain functions into shared service centers. In
most cases, these have been divided into two main
areas: the procurement function which focuses on how
the organization purchases across the extended
enterprise, and the customer order side which
combines order taking, financing, logistics planning and
elements of logistics execution.
This nirvana of logistics will essentially allow
organizations to optimize the processes and interaction
between all of these areas to deliver greater visibility
and inform their logistics operations planning. All that
remains, it is envisioned, is to send the actual pick
order out to the operations team at the distribution
center or fleet level.
However, in many cases, benefits have been slow to
materialize. In part, this is because it is still early days
and organizations still must strike upon the optimal
operating model and integrate processes. But it is also

because the skills and capabilities residing within newly

formed shared services centers are not yet aligned to
the unique requirements demanded by shared services.
What does this mean for third party logistics providers?
In some cases, a company's move towards shared
services may provide great opportunity, particularly for
those that are able to partner with their clients shared
services functions to deliver on the operational
requirements. More mature providers may even be able
to provide those shared services functions themselves,
thereby pushing themselves further up the value chain.
Regardless, the adoption of shared services for logistics
and distribution will require outsourced providers to
reconsider their operating models to see how this trend
will impact their business strategy. And while some
may find themselves further commoditized by the
introduction of shared services into the mix, others may
discover opportunities to deliver a closer and more
profitable relationship with their clients.

Integrated approaches to Sales and

Operations Planning
The Sales and Operations Planning (S&OP) process is
central to many of the key findings highlighted earlier in
this report. Proper S&OP can help reduce costs,
provide flexibility and manage demand volatility. With
this in mind, many of the more mature supply chain
organizations have started looking at ways to develop
more effective S&OP processes through integrated

Were seeing a big increase in logistics becoming an integral part of shared

service centers from the procurement through to the execution of logistics,
noted Iain Prince, Director in KPMG in the UKs Supply Chain practice.
This may lead to a range of opportunities for both supply chain directors
and logistics and distribution providers.

Supply Chain Agility: Managing Change | 13

While integrated S&OP is not necessarily new, it is now

receiving much more attention. Essentially, integrated
S&OP requires end-to-end collaboration that includes
everyone from finance and sales through to logistics
providers and individual suppliers. Rather than
developing sales and operations plans in silos and then
tossing them over the fence down the line, integrated
S&OP envisions that plans are constructed in unison,
allowing everyone within the extended supply chain
visibility into demand and supply requirements.
Those that are focusing on establishing integrated
S&OP now have access to a growing suite of software
and technology solutions to link up the various internal
and external stakeholders onto a single platform (many
by taking advantage of cloud computing). But as with
any transformational IT project great care must also
be given to ensuring that the right people, processes,
controls and governance are also in place to support the

Changing face of technology investment

Technology continues to be high on the agenda for
supply chain leaders around the world. But while some
organizations are still implementing new enterprisewide technology solutions (particularly in the emerging
markets and in cases where legacy platforms are
simply too old to cope), most seem to be focused on
conducting upgrades and applying tweaks to their
existing systems to help unlock new functionality.

In part, this focus on smaller-scale technology change is

a result of both the economic climate (in which OpEx
investment is scarce) and the rapid pace of change
within the industry itself (leading to uncertainty about
purchasing decisions). The maturing of cloud may also
be a factor as organizations wait to see how new cloudbased technologies will impact their operations (see
However, while there are still a large number of
organizations either embarking on, or engaged in, largescale technology implementations, our research
indicates that supply chain considerations are not
always considered when IT purchasing decisions are
being made. ERP systems, for example, tend to focus
on the finance side of the equation and are often less
tailored for the needs of a supply chain and logistics

Photo: ZIM Integrated Shipping Services

Supply Chain Agility: Managing Change | 15


ZIM Integrated Shipping


Collaborating across the supply chain to reduce

While the shipping services sector
continues to push through the storm, all
indications point to more waves ahead.
Facing volatile fuel costs, turbulent global
trade patterns and a widely-anticipated
glut of new mega-container ships floating
into the market, it is not surprising that
the shipping sector has experienced rapid
and dramatic flux since the start of the
global financial crisis in 2008.
To say it has been volatile would be an
understatement, suggested Chris Evans,
Managing Director at Zim Integrated
Shipping Services, one of the worlds
largest cargo shipping companies. Over
the past five years, the container shipping
industry has navigated through two major
busts one at the onset of the global
financial crisis in 2008 and the second
when the Euro crisis deepened in 2011
and one meagre return to profit in 2010.
As a result, many of the big shipping lines
are now operating trade routes at a loss
which, obviously, is unsustainable in the
In an effort to soak up laid-up capacity and
take advantage of the fuel savings that
can be gained by steaming at slower
speeds, a growing number of shipping
lines have introduced new slower
services that deliver a lower cost service
to their customers. We offer a mix of
services including a slow service where
the rates tend to be lower and a couple of
very fast services, explained Mr. Evans.
The slower services offer a great
alternative that delivers value all around:
the shipping line saves costs by using up
capacity instead of paying for ships to idle,
fuel consumption is lower which saves
money and reduces overall carbon
emissions, and clients get more choice at
lower price points.

While Mr. Evans agrees that fluctuations

in shipping rates are creating volatility in
supply chain costs for clients, he also
notes that rates are currently far below
break-even for many shippers. These
continuous boom-bust cycles dont do
anyone any good because all it does is
create inconsistent pricing, he said.
Increasingly, our clients are approaching
us to create three-year freight deals that
provide them with a level of surety on
costs by paying a rate that is reasonable
for both parties.
The shipping line has also seen a rising
trend in supply chain collaboration
between competing customers.
Companies are looking for opportunities
to be innovative about how they reduce
their costs and sharing space allows them
to reduce the fresh air from their
containers, Mr. Evans adds. I think this
type of supply chain collaboration will be a
growing trend for the many industries
over the next ten years.
Ultimately, Mr. Evans suggests that by
understanding their true cost of shipping
supply chain directors can gain greater
control over volatility and supply chain
efficiency. The only way to truly cut
costs in a sustainable way is to
understand what goes into those costs,
not just within the extended supply chain
but also from the logistics and shipping
companies, he added.

16 | Supply Chain Agility: Managing Change

Supply chain in the cloud

Cloud is undoubtedly the next generation of opportunity

for todays supply chain. Indeed, while cloud is a
relatively new technology, its benefits are already
becoming blatantly obvious to supply chain directors
and their executives: organizations will be able to enjoy
real-time access to critical information, achieve greater
transparency across the extended supply chain, reduce
their cost to serve, gain flexibility and scalability from
their technology, and gain the capability to respond to
demand and supply pressures as they occur.
Take demand volatility for example; when all aspects of
the supply chain are connected through a cloud
environment through the distribution channels and into
the retailer, all parties gain unprecedented vision into
demand and supply requirements. Manufacturers can
virtually see a product being taken off the shelf and
react accordingly.
Its no wonder therefore that most supply chain
operators are positively salivating at the potential
offered by cloud. But in reality, few seem to be actually
implementing solutions. In part, this is because of
lingering concerns and barriers related to data security.
But the reality is that the security deployed by most
cloud providers now far outstrips that of the
organizations they serve. Security, in other words, is a
reason to go to the cloud, not avoid it.
All indications point to the fact that even if cloud only
delivers half of the promise that is being discussed its
application to the supply chain will be revolutionary. It is
not difficult to imagine the benefits of, say, a beverage
CPG who integrates weather reports and predictive
technology into their data analytics, thereby triggering a
cascade of reactions such as sending an order down
the supply chain and a delivery command to the
logistics function.

Cloud offers a number of significant advantages to

supply chain leaders: very low up front costs, it doesnt
take long to implement, you can connect your suppliers
almost immediately and all of your trading partners in
fairly short order, and the software is very powerful,
noted Steve Barron, Senior Manager, with KPMG in the
UK. There are challenges however, and supply chain
leaders will need to be careful that they maintain the
integrity of their business processes while adjusting
their operating models to take full advantage of the
benefits of cloud.

The consequences of a Greek default on

the supply chain
While our research did not specifically ask about the
impact of the Eurozone crisis, it seems clear that if
Greece were to default on its EU bailout repayments
and leave the Euro, its economy would likely see a
decline and higher inflation, as prices for imported
products and services increase.
The specter of economic turmoil may also increase the
cost of inbound supply, raising the risk of suppliers
going out of business. There is also a danger that
potentially high-risk investment in the form of upfront
payments will be required to service Greek supply chain
elements. If that isnt bad enough, the instability in the
Eurozone is increasing the risk of supplier failure, which
can lead to disruption of production.

Not since the end of Second World War have global supply chains been so
fraught with risk, noted Andrew Underwood, KPMGs UK Head of Supply
Chain. The current Eurozone crisis is just one of the many supply chain
risks that are threatening companies around the world.

Integrating the operational S&OP

process as an essential part of the
strategic CxO decision-making
process allows the finance function
to become a more strategic business
partner, and provide direction in
managing the company strategy
for example through active risk
management, noted Jens Wagner,
Manager with KPMG in Germany.
Moreover, by creating this
integration, companies are
able to quickly identify and respond
to risks and opportunities arising in
the market place.

18 | Supply Chain Agility: Managing Change

With such concerning economic turmoil and the clear

links this can have on the supply chain, it is essential
that contracts are re-evaluated. If critical suppliers are
located in Greece, purchasing departments will need to
review their current sourcing arrangements and
possibly re-tender certain contracts to minimize their
risk with respect to supply availability, market price
increases and financial health of suppliers. Risk
managers may also want to consider the impact of
cross-border trading.
In a broader sense, the Euro Area Crisis reminds us that
organizations should always be familiarizing themselves
with the commercial impacts of country specific issues
and how they can quickly turn into real supply chain
risks. Doing nothing is not an option. Supply chain risk
must be on the corporate agenda and it is time to
capitalize on this to ensure that the appropriate risk
mitigation strategy is taken.

Is Tax being fully considered in Supply

Chain Management?
There remains a high level of interest and activity in the
potential cost savings that could be achieved by
understanding the tax impact of changes in the way
supply chains are managed. Historically, this interest
has been coming mainly from the finance community
and tax directors only occasionally was tax a key
component in decision making by supply chain
managers. However, this has started to change in
recent years with heads of procurement, in particular,
showing increased interest in tax efficiency
Any major change to supply chain, whether to the
country goods or services are sourced from, the role
companies within an organization play (e.g. centralizing
procurement or distribution) or the way goods or
services are sold on within or outside of the
organization, will usually have a significant tax cost or
benefit associated with them.
"Governments are competing for tax revenues; in
particular to be the location of choice for the
development of R&D, the registration of patents, or
holding of other intellectual property. Many will also
offer tax or other grants and incentives to
continue/begin manufacturing in their country," noted
Amanda Tickel, Tax Partner with KPMG in the UK.

"The question is, are you taking full advantage of the

reliefs and incentives offered in countries where you do
business? And a word of caution, there can also be a
penal system for importing or producing in different
countries additional tax or duty costs need to be
factored in and could completely negate other cost
savings carefully negotiated."
Many mature organizations are aware of the tax system
close to home, and changes in the supply chain or
business operating model offer the most substantive
and sustainable opportunity to manage the Effective
Tax Rate with less challenge from tax authorities or
negative PR associated with tax planning the key is
to ensure the supply chain team is ever more closely
linked in to the tax team to ensure changes are
incorporated into any existing tax structure. Further, as
businesses operate more globally and search out new
markets to supply to or source from, tax becomes more
challenging. Emerging markets have constantly
changing and complex tax systems that need careful
monitoring and can throw up both costs and benefits at
a moments notice.

While TESCM practices have been discussed

for some time now, few supply chain
directors seem to have a clear
understanding of how tax efficiency can
deliver long-term benefits, noted Richard
Kirby, an Associate Director with KPMG in
Australias Supply Chain practice. Given the
diverse differences between tax regimes in
Asia Pacific, I believe that many supply chain
leaders are missing a trick by not
incorporating tax implications in their
supply chain decision
making process.

20 | Supply Chain Agility: Managing Change

Focus on talent

Q&A with Dorothea Carvalho, Professional Development Project

Director with The Chartered Institute of Logistics and Transport in
the UK
What are some of the key issues facing
supply chain directors when it comes to
talent management?
The UK market is interesting right now. Despite high
unemployment, it can still be hard for organizations to
find the supply chain personnel with the right skill sets.
In part, this is because tight profit margins, together
with a just in time business philosophy, often means
that organizations will not carry extra staff in slow
periods preferring instead to keep only the minimum
staffing levels to do the job. The problem with this
approach is that, in times of peaks in demand,
organizations can then find themselves unable to
respond effectively. Weve also noted a lack of
succession planning by companies and a lack of
available people with the right skill sets coming into the

How can supply chain leaders nurture and

grow supply chain talent?
To prepare for the next generation of supply chain
managers, organizations need to take a long-term
strategic approach to developing their supply chain
personnel in a way that is aligned to business
objectives. We need to move away from the gifted
amateur approach and, rather than recruiting a graduate
with a degree in any subject, companies in the UK need
to start advertising for graduates with supply chain and
logistics degrees as these are the people who have
demonstrated an interest in the subject and not just
fallen into it.

employers are finding that, with up to 85-90 per cent of

the students actually international students, there
continues to be a massive shortfall of highly-trained
recruits in the local marketplace. The reality is that
supply chain is still often not seen as a particularly
exciting field, and we, as an industry, will need to start
promoting supply chain as a viable, varied career option
with huge opportunities to progress.

What does a world class supply chain

training and development program look
World class logistics and supply chain people
development programs are (a) inclusive with a program
covering personnel at all levels, (b) have support from
the highest level within the organization to ensure
continuity and (c) are based on learning outcomes and
objectives which are aligned to business objectives.
Weve found that having extremely well-qualified,
talented people at the senior levels in an organization
can be a wasted investment if these people are not
supported by equally well qualified and skilled staff at
each level and for each supply chain function.
But whilst we believe that learning is a crucial enabler
of success and the delivery of organizational business
objectives, we also think that we need good role
models and champions that understand the ever
changing demands of the profession.

In the UK, there are a number of universities that offer

a wide variety of supply chain undergraduate and
postgraduate degree courses. However, many UK

Working out just how those alternate suppliers would connect on a logistic
level, if supply was interrupted, was an area often missed noted Iain Prince,
Supply Chain Director with KPMG in the UK. If you select an alternate supplier
in a developing country, you have to be mindful of whether all elements of the
operation are secure from the planning, inventory and logistics infrastructure
and whether these are able to cope if demand suddenly fluctuates.

Supply Chain Agility: Managing Change | 21

Taking action to mitigate supply chain risk

After the events of the past few years, many supply
chain organizations have now started focusing on
supply chain risk and assessing their exposure to
supplier failure. However, from our research, it seems
that few organizations have actually invested the time
or resources to develop appropriate responses or
mitigation strategies.
Some of the more mature organizations in this regard
have now worked their way down three or four tiers of
suppliers to really understand where the risks lie within
their supply chain. Others have invested in
warehousing, spare capacity and first off-take contracts
with alternate suppliers to reduce the risk of supply

Sustainability leads to opportunity

There are clear indications that the issue of
sustainability, beyond basic compliance and reporting,
has fallen down the priority list for supply chain
directors. This is no big surprise, given the almost
single-minded focus on cost over the past five years.
But supply chain leaders must recognize that
sustainability is not only a reputational matter, it also
has the potential to reduce cost and mitigate risk across
the supply chain and logistics organization. Lets start
with the risk side: water scarcity is a key environmental
issue that has been discussed with growing anxiety
over the past decade, yet few of the more waterintensive industries have implemented water reduction
plans to mitigate the risk of rising costs or worse
lack of supply.

Using the same example for cost, it is clear that by

reducing water consumption within the supply chain,
organizations can also reduce the input cost associated
with that. Companies either operating in or whose
supply chains include the chemical, agriculture or
mining industries may find the cost savings to be
Supply chain leaders must also invest the time and
resources to stay abreast of new technologies and
trends and assess how they may impact their
operations. This is not only a risk mitigation measure; it
also provides visibility into opportunities to gain
competitive advantage; a lesson that the auto industry
seems to know well.
Those with large fleets will need to pay particularly
keen attention to changing trends as the pace of
technological change in this area is brisk. What is more,
with most parts and vehicle manufacturers now
offering a wide array of fuel efficient products (each
seemingly with a claim that tops the last) fleet
managers will need to carefully assess their options on
a regular basis. Unfortunately, most fleet managers
tend to rely on their vehicle suppliers to provide the
best information, and therefore only reassess their
options when contract leases are due to expire,
meaning that significant sustainability achievements
and potential cost savings could remain on the table
longer than necessary.

22 | Supply Chain Agility: Managing Change


Clearly, volatility is creating new pressures and

opportunities for supply chain directors and corporate
executives around the world. But while some seem to
still be taking short-term actions in order to weather the
storm, others are pursuing new approaches and
reorganizing their operating models to turn volatility into
Based on our interviews with 80 supply chain
organizations across 11 markets, we have found that
supply chain directors and executives seem to be
focused on three main themes:

Identifying opportunities to squeeze further costs

out of the end-to-end supply chain to drive
profitability; and understand the true supply chain
cost to serve.

Developing more effective responses to demand

volatility in order to reduce fluctuations and reduce

Reorienting their operational processes with a

'LEAN flavor' to enhance flexibility while maintaining

And while, in the midst of all of this, we saw strong

reports of maturity in Customer Relationship
Management and Supplier Relationship Management,
this report also clearly demonstrates that more work
will be needed particularly in S&OP and Supply Chain
Risk Management if supply chain directors hope to
enhance their overall maturity and increase their agility
in the face of continued market volatility.
We hope that these findings and our accompanying
analysis helps supply chain leaders and corporate
executives to re-invigorate their focus on developing
more mature supply chain organizations that are able to
not only withstand volatility, but benefit from it. We
would be delighted to meet with you in person to
ascertain your current level of supply chain maturity and
begin the complex task of charting your supply chain
strategy for the future.
For more information, please contact any of the authors
listed on the back of this publication, or your local
KPMG member firm office.

We are also seeing continuing volatility in the supply

chain market itself. Cloud computing models and the
wider adoption of shared services models will force the
need for a re-think about how operating models will
change in the future. The increased focus on integrated
S&OP processes and the benefits of environmental
technologies will also bring positive change to the

Were seeing a big increase in logistics becoming an integral part of shared

service centers from the procurement through to the execution of logistics,
noted Iain Prince, Director in KPMG in the UKs Supply Chain practice. This may
lead to a range of opportunities for both supply chain directors and logistics and
distribution providers.

When competing in a global market

place, the response to emerging
carbon emissions reporting across
the supply chain is fast becoming a
source of competitive advantage,
added Kevin Williams, a Manager
with KPMG's Climate Change and
Sustainability practice in the UK.
Forward looking companies who
actively monitor and report carbon
emissions across the supply chain
manage inconsistencies in
management data carefully to
reduce costs and protect against
risk, at the same time fostering a
philosophy of collaborative and
continuous improvement to sustain
efficiency gains through proactive
carbon data management

24 | Supply Chain Agility: Managing Change

Quantitative Findings

During 2012, the supply chain professionals across
KPMG's network of member firms conducted a series
of in-person interviews with Supply Chain Directors (or
their equivalent) at 80 companies across the UK, US,
Portugal and Germany.
Respondents represented a broad cross-section of
industries and sectors including Consumer Packaged
Goods, Retail, Diversified Industries, Logistics
Providers, Utilities and Telecommunications.
Participating organizations rated their relative level of
maturity across key supply chain areas. For this years
report, we have evolved our approach to add two new
areas that, based on experience and feedback, are high
on the supply chain directors agenda: Sales and

Operations Planning and Supply Chain Risk. As a result,

our supply chain maturity levels now focus on eight

Supply Chain Strategy;

Suppler Relationship Management (SRM);

Sales and Operations Planning (S&OP);

Supply Chain Risk;

Working Capital and Inventory Optimization;

Logistics and Distribution;

Customer Relationship Management (CRM); and

Supply Chain Performance and Financial


In each case, responses were analyzed and categorized

into four segments:

Maturity Level

Score (percent)



75% 100%


50% 74%


25% 49%

Planning recognizes the functional interdependencies and impacts

Operational performance is monitored and reported
Roles and responsibilities are clearly documented


0% 24%

Supply chain outlook shaped within functional silos

Independent operations focused on expediency
Adversarial relationships internally and externally

A fully integrated supply chain

Strategic partnerships with suppliers and customers
Collaborative stakeholder programs
Realization of synergies such as integrated reporting and IT

Cross-functional supply chain integration

Culture of continuous improvement focused on improved efficiencies
and reduced waste
Reduced data entry and duplication

Reponses were aggregated and compared across

sectors to identify key issues and challenges that
impact the successful and efficient operations of supply
chain organizations across the country. Analysis of the
findings was conducted by supply chain professionals
from KPMG's UK firm.
The study builds on from KPMGs 2011 Supply Chain
Maturity report (Supply Chain Complexity: Managing
Constant Change) and forms part of a regular series

focused on creating a baseline of maturity levels for

supply chain organizations. For 2013, KPMG intends to
further expand the number of respondent organizations
worldwide to deliver a more holistic vision of the
challenges and opportunities facing Supply Chain
Directors and suppliers globally.

Supply Chain Agility: Managing Change | 25

Quantitative Analysis

Overall, our analysis reveals that supply chain maturity

has increased overall when compared against our 2011
report, though some areas (such as supply chain risk,
cost to serve analysis and sustainability) still seem to be
slow to develop in many sectors and geographies.
It must be noted that the following sector and overall
study ratings are correct as at 31 August 2012 and are
comprised of the UK data set only. Since this is an ongoing assessment, the ratings provided to individual
participants may vary from this report.

Year-on-year comparison
Over the past 12 months, supply chain maturity levels
have remained broadly stable, with the slight decrease
in the overall average level of maturity explained largely
by the addition of new analysis categories that focus on
Supply Chain Risk and S&OP.

and Diversified Industrials have shown an increased

level of maturity in CRM and SRM.
Increased levels of market volatility and uncertainty
have also caused respondents to review their ability to
effectively manage global supply chain risk. Take, for
example, the top performers in CPG and Diversified
Industrials who were forced to reassess their maturity
levels in both working capital management and logistics
and distribution as a result of the sustained pressure on
their supply chains over the past 12 months. For many
respondents, therefore, the ability to incorporate risk
management into global supply chain operating strategy
was frequently noted as an area of current focus.
The Retail sectors results in particular demonstrate
that a restricted level of investment in supply chain
systems and infrastructure has reduced respondents
confidence in the ability of their supply chain strategy
and S&OP activities to respond to increased levels of
demand volatility. Flat sales figures have also resulted
in reduced levels of stock turnover, thereby putting
pressure on working capital management.





Study average 2011

Study average 2012

Figure 1: Overall Supply Chain Maturity scores, for 2011 and 2012

Beyond the numbers, however, our interviews revealed

that respondents are re-evaluating their optimism
following a difficult year in which the economy
presented a steady stream of challenges to supply
chains across all industries. Many organizations also reevaluated their ability to deal effectively with
unforeseen volatility in 2012, which led to a closing of
the gap between the top performers in the CPG,
Logistics, Diversified Industrials and Retail industries.
This notwithstanding, this report does indicate slight
improvements in the overall response maturity level,
led mainly by the Logistics and Diversified Industrials
industries. In part, this may be because of the recent
(recession-driven) focus on enhancing profitability
through the supply chain which has forced many
respondents to re-evaluate their existing customer and
supplier relationships and as a result both Logistics





CPG 2012

Logistics 2012

Diversified industrials 2012

Study average 2012

Retail 2012

Utilities 2012

Figure 2: Supply Chain Maturity scores by industry sector 2012

There was little significant change between this year

and last in the top three industry sectors: Diversified
Industrials (DI), Consumer Packaged Goods (CPG) and
Logistics and the overall study average rating remains
largely consistent with that reported last year
(intermediate). It is encouraging to note, however, that
at the lower end of the spectrum, the minimum rating
rose by two points since last year (from 60 to 62).

26 | Supply Chain Agility: Managing Change


Sector comparisons




The Logistics sector demonstrated one of the highest

overall levels of maturity in our survey, which may not
be surprising given that this is the core focus of their
business. Overall, the Logistics sector ranked either at
or above the all-industry average across all eight
categories. Moreover, the sectors year-over-year
results were fairly consistent, indicating that the sector
maintained their level of maturity. The sector achieved
an average maturity rating of 73 and saw little deviation
between categories, suggesting rather even focus on
the main supply chain disciplines.




Diversified industrials 2011


Diversified industrials 2012


Figure 4: Supply Chain Maturity scores for Diversified Industrials

sector 2011 and 2012




While the Retail sectors overall maturity rating fell

slightly in comparison to our survey in 2011, the sector
did demonstrate higher levels of maturity in certain
categories such as Supplier Relationship Management
and Customer Relationship Management.



Logistics 2011



Logistics 2012


Figure 3: Supply Chain Maturity scores for Logistics sector 2011

and 2012


Diversified Industrials (DI)


While the DI sector saw their average rating fall from

68 points in 2011 to 66 points in 2012, the sector
ranked highly in their approach to Customer
Relationship Management (79) and Supply Chain
Performance and Financial Management (74). The
sector also displayed improvements in each of Logistics
and Distribution, Working Capital and Inventory
Management, S&OP and Supplier Relationship
Management. Overall, the sector reported enhanced
maturity in five of the eight selected categories and
netted an overall Advanced rating.


Retail 2011


Retail 2012

Figure 5: Supply Chain Maturity scores for Retail sector 2011 and

Supply Chain Agility: Managing Change | 27

Consumer Packaged Goods


The CPG sector again scored rather well in all of the

main categories and reported the joint highest level of
maturity across all surveyed industry groups. CPG
companies also retuned the lowest deviation between
category scores, again indicating that relatively even
focus has been placed on all of the key supply chain
disciplines. Small setbacks in Customer and Supplier
Relationship Management were offset in part by
improvements in Sales and Operations Planning, and
Working Capital and Inventory Management.




CPG 2011

CPG 2012

Figure 6: Supply Chain Maturity scores for CPG sector 2011 and


Risk Mgt







Diversified Industrials




Figure 7: Supply Chain Maturity scores by category and by sector 2012

This year, we expanded the number of categories

within our survey to include two categories that have
become increasingly important to supply chain
directors: Sales & Operations Planning and Supply
Chain Risk Management.



Study Average

28 | Supply Chain Agility: Managing Change

Supply Chain Strategy

Logistics & Distribution

With an average rating across all industries of 69, all

sectors except for DI and Retail reported above average
maturity. Excluding these bottom two sectors, the
category ranks as one of the more progressed
disciplines for Logistics, DI and CPG sectors. Overall,
the category saw reduced maturity when compared to
last years results.

Overall maturity for the category rose over the past

twelve months from 67 to 69. Once again, as would be
expected, the category was led by the CPG and
Logistics sectors. The Diversified Industrials and Retail
sectors indicated slight year-on-year improvements in
this category.

Supply Chain Risk Management

This category returned a below average level of
maturity, indicating that some focus will need to be
placed on enhancing risk management and planning
strategies. As this was the first year that this category
was included in this survey, there is no comparable
year-over-year data.
Supplier Relationship Management
SRM returned the second highest level of maturity,
with a score of 70. The relatively small deviation
between sectors in this category is indicative of the
renewed focus all companies have had to make on
ensuring strong relationships with their suppliers during
a period of recession.
Sales & Operations Planning
With the lowest average maturity across all the
reporting sectors, Sales & Operations Planning clearly
demands increased focus from supply chain directors
and executives going forward. The Communications,
Utilities and Retail sectors returned the lowest rates in
this category. As this was the first year that this
category was included in this survey, there is no
comparable year-over-year data.
Working Capital
The results for Working Capital show significant
deviation across the different sectors, demonstrating
that while some have achieved advanced maturity in
this category, others still have much work ahead of
them. That being said, the category saw a two point
increase in overall maturity year-over-year. The CPG and
Logistics groups indicated that they had retained a
significant advantage versus other sectors in this

Customer Relationship Management

Across the board, Customer Relationship Management
was the area where most sectors demonstrated the
highest levels of maturity, ultimately showing increased
maturity since 2011. Moreover, there was little
deviation across the sectors meaning that this is a fairly
developed discipline overall. Diversified Industrials
returned a score of 79 for this category its highest
Supply Chain Performance and Financial Management
Looking across the group, there seems to have been
little change in this category since last year.
Communications retained its top ranking with a score of
80, while Utilities continues to trail with a score of 58.
CPG fell marginally in this category, while DI and
Logistics both climbed somewhat.


Europe, Middle East and

Andrew Underwood

Partner, UK Head of Supply Chain

KPMG in the UK
T: +44 (0) 121 232 3886

Iain Prince

Director, Supply Chain

KPMG in the UK
T: +44 (0) 117 905 4257

Cyril Schlup

Director, KPMG in France

T: +33 1 5568 6094

Thomas Hillek

Partner, KPMG in Germany

T: +49 89 9282 1409

Alessandro Trojan
Partner, KPMG in Italy
T: +39 0 1183 6036

Roger van den Heuvel

Partner, KPMG in the Netherlands

T: +31 2 0656 7044

Svein-Egil Hoberg

Director, KPMG in Norway

T: +47 4063 9413

Jorge M. Gomes

Amrinder Singh

Roger Mueller


Manager, KPMG in Portugal

T: +35 12 2010 2350

Director, KPMG in Switzerland

T: +41 44 249 4535

Dinesh Kumar

Associate Director, KPMG in South

T: +27 8 2717 8725

Asia Pacific

Associate Director, KPMG in Singapore

T: +65 6507 1907

Kevin OLaughlin

Principal, KPMG in the United States of

T: +1 617 988 1124

Fernando Aguirre

Partner, KPMG in Brazil

T: +55 11 2183 3125

Richard Kirby

Associate Director, KPMG in Australia

T: +61 3 9838 4265

Peter Liddell

Partner, KPMG in China

T: +86 21 2212 3793

Hirofumi Hayashi

Managing Director, KPMG

Management Consulting in Japan
T: +81 3 5218 6306

Leornie Quek

Director, KPMG in Singapore

T: +65 6411 8107
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