Supply

chain
platforms
Where do you want to play?

November 2019

read.kpmg.us/futureofsupplychain

© 2019 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 and
logo are registered trademarks or trademarks of KPMG International.
 Every part of the supply chain is potentially
open to third-party, ‘as-a-service’ providers.
This offers enormous opportunity to make
supply chains more adaptable and efficient
by accessing high-quality expertise – without
having to invest heavily in fixed assets.
Additionally, manufacturers could also
become as-a-service providers themselves,
offering their own capabilities to others to
use up spare capacity and build new revenue
streams. However, the rise of platform-based
services puts pressure on every organization
to decide what they’re really good at – and
what can best be done by others. It also
calls for a new set of skills and capabilities
to manage this expanding network of
partners and suppliers and deliver radical
organizational change.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated
Supply chain with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks
1 platforms or trademarks of KPMG International.
Your supply chain The supply chain has

needs to be
moved from being a
cost-reduction engine
to take center stage
in the battle to offer

customer-centric
superior customer
experience and
deliver competitive
advantage.”

The way in which consumers and businesses buy and

receive goods has changed dramatically. Customers Sam Ganga
Principal,
now expect highly personalized products that are easy Connected Commerce Lead,
to order and return and are delivered within days or even KPMG in the US

hours to their chosen location.

This has elevated the supply chain to the heart of customer experience. The rise of
supply chain as-a-service means that every stage of the chain can potentially be carried
out by a third party, from production to last-mile delivery.

So, the burning question facing companies across multiple sectors is how will your
organization access the capabilities to deliver its manufacturing or supply chain strategy?
With the option to build, buy or partner to access supply chain services, companies must
decide which of their capabilities to retain in-house. It’s not simply a case of picking what
they are best at; core capabilities should be a key differentiator that can see off intense
competition.

Accessing supply chain as-a-service – whether it’s planning, production, procurement or

logistics brings exciting opportunities. It reduces fixed costs and enables organizations
to scale volume up or down easily and cost-effectively. New product development also
becomes less of a risk, as new innovations can be trialed without investing in assets.
Indeed, as product life-cycles become shorter, as-a-service gives flexibility to regularly
review and change the entire business model.

© 2019 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 and Supply chain
logo are registered trademarks or trademarks of KPMG International. platforms 2
Platform based
businesses
Supply chain cloud is increasing the range of collaboration opportunities. Fifth
party logistics (5PLs) will emerge to operate joint supply chain platforms between
customers, organizations and suppliers.
KPMG International research1 shows that 72 percent of manufacturers have – or plan to have – direct-to-commerce delivery, and 68
percent believe that direct-to-commerce will have a major impact on their supply chains.

No area of the supply chain is untouched by outsourcing via platforms, with a wide range of functions available as-a-service.

Supply chain management as-a-service 

1 Providing ongoing management of your overall supply chain to enhance network performance

Supply chain planning as-a-service 

2 Helping you with decisions like whether to own or rent functions, whether to launch specific
products, and market entry plans

Commercial optimization as-a-service 

3 Helping choose and manage partners in your network, including contract support and
management

72%
Manufacturing as-a-service 
4 Deciding whether to build or buy

of organizations
see as a service R&D as-a-service 
5 Access to specialist R&D services to speed up the innovation cycle
platforms as a
major disruptor
to supply chain
Inventory as-a-service 
functions2 6 Fully-managed, often highly automated and robotic warehouse facilities

Logistics as-a-service 
7 Cutting edge logistics to optimize routes, with last-mile deliveries enhanced by a wide range of
players including citizens

1
State of the Industry (2019): Digital Supply Chain Performance
2
Future of Supply Chain, SCM World, November 2016

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated
Supply chain with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks
3 platforms or trademarks of KPMG International.
Rethinking your
brand promise
Customer experience used to be all about making the buying
process more convenient. Today, fulfilment is arguably as important
as – or even more important than – the actual goods you sell. With
e-commerce becoming more prevalent, the experience of returning
products is dominating the overall customer experience for a brand.

Companies are attempting to make supply chains more customer-centric, but this shift is forcing them to
rethink their brand promise – by asking three simple but critical questions:

?
Is it easy to buy from my organization, in terms of product choice (including personalized
variants), user-friendly website, and ease of purchase?

Is it easy to get the product where the customer wants it, when they want it, packaged in
the way they want? And will they have full visibility throughout the logistics journey?

Is it easy to return the product and get a swift refund?

If you have a reputation for high quality and reliability, your production facilities must be up-to-date and well-
maintained. If you promise wide choice, then you need a large inventory close to the customer. If you’re known
for same-day delivery, then you’d better have a first-rate logistics offering. And if your promise is no-quibble
service, the returns and refund process must be seamless.

All these promises will impact your decisions to keep services either in-house or outsourced. You may even
have to use different supply chains for different customer segments, depending upon their specific needs. The
move to online commerce, for example, often results in smaller order quantities to a wider range of locations,
which can strain existing logistics networks and raise delivery costs.

As the lines between R&D, product development, sales and marketing, sourcing, inventory and logistics blur,
supply chain professionals need to be intimately involved in product decisions, working seamlessly with other
parts of the business to deliver a consistently excellent customer experience.

© 2019 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 and logo are registered trademarks or trademarks of Supply chain
KPMG International. platforms 4
Serve or
be served
If your business has a genuinely differentiated supply chain
capability, you may be able to offer this to other organizations
on an as-a-service basis.

Perhaps you’re a manufacturer with spare capacity and want to make it available to smaller
startups that can’t afford to invest in expensive assets. Maybe you have a killer last-mile
delivery offering that both manufacturers and retailers can use to reach their customers quickly.
You might have a specialized reverse logistics operation with a wide range of pick-up points,
which other firms can tap into. What if your warehousing is leading edge, enabling you to
manage inventory efficiently for packaged goods companies? And if you have an extensive
spare parts supplier network, you could use this resource to help others access products.

Becoming an as-a-service provider can turn cost centers into revenue centers. It can cement
your position as a key player in your chosen area of the supply chain, as well as bring you
volume efficiencies as you expand your range of new customers, creating a virtuous circle
where you improve margins and offer lower prices.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of
Supply chain independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
5 platforms All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
 Underutilized assets
like shipping containers,
vehicles, machinery,
energy or storage space
present untapped
opportunities to sell
as-a-service.

Rob Barrett
Supply Chain Practice Leader,
KPMG in the US

© 2019 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 and logo are registered trademarks or trademarks of Supply chain
KPMG International. platforms 6
 How can
KPMG help?
KPMG recognizes that today’s business leaders don’t
only need solutions, they need reliable partners.
Whatever your sector, KPMG can add value at any
point in your supply chain transformation journey.
Our multidisciplinary teams combine deep industry
expertise with an agile approach to help you unlock
existing value within the enterprise and enhance your
capabilities to achieve sustainable growth in the future.

KPMG can bring to bear a suite of frameworks, methodologies and tools to help
you review, design and optimize your supply chain function.

– Drawing on a wealth of insight and experience, KPMG has developed a sophisticated,

purpose-built digital analytics platform that your teams can leverage to pinpoint
opportunities and cost-drivers faster and more effectively than before.
– KPMG has designed a series of proprietary operating model and technology
accelerators that can turbo-charge your supply chain function and accelerate return on
investment from transformation efforts.
– KPMG has devised and adheres consistently to a systematic methodology that
identifies and interrogates costs across the full length of the value chain. We work
diagnostically, top to bottom, from the costs associated with your product portfolio
through every process in the design, manufacture and distribution of individual
products. It’s an approach that enables us to attack costs at their source, retaining
value far more effectively than alternatives that focus on mitigating costs once they’re
cemented into your proposition.
– At KPMG, we’re obsessed with value. Our teams use a variety of tools and
methodologies to target and realize benefits and opportunities for ROI that can offset
the costs incurred in transforming your supply chain. We can create a transformation
roadmap that means you don’t have to wait to see the value in upgrading your supply
chain function.
– KPMG can provide the frameworks and analytics capabilities that enable you to
distinguish between ‘value eroding’ and ‘value contributing’ complexity. We’ll help you
develop an adaptable operating model with a bias for standard work that strikes an
optimum balance between product variety and process complexity.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of
Supply chain independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
7 platforms
 Our differentiators Analyst recognition

KPMG Powered Supply Chain brings together industry- KPMG has been named a leading global service provider for
leading practices and processes, pre-configured, cloud- Supply Chain Planning consulting services in a major new report:
based technology applications and a next-generation The ALM Vanguard: Supply Chain Planning Consulting 2019
delivery framework to help you jump start your supply report. The report notes how “KPMG demonstrates consistent
chain transformation journey. We can help you to: success in elevating and maturing client planning organizations
into a truly integrated, high-functioning operation that is capable
– Leverage customer-centric business models, pre-built of delivering real positive results.”
KPI libraries, data models and reports to align your
supply chain to your customer experience.
– Take advantage of best-practice process architectures, Additional market recognition
a catalogue of robust controls and market-leading
service model design to be able to anticipate and
quickly resolve supply continuity problems.
ALM
– Exploit industry insights and advanced data analytics
– Vanguard Leader in Sourcing Strategy Consulting 2018
to organize your logistics capabilities around actual
demand rather than sales forecasts. – Vanguard Leader in Procurement Operations Consulting 2018
– Utilize KPMG’s Target Operating Model to drive – Vanguard Leader in Logistics Management Consulting 2017
sustainable transformation and enhance the value of
your supply chain. Gartner Market Guide for Supply Chain Strategy &
The result is reduced implementation risk, clear, Operations Consulting
consistent return on investment with top-decile – 2018, 2017, 2016
performance and a solid platform for continuing business
evolution.

KPMG Connected Enterprise is our customer-centric

and enterprise-wide approach to digital transformation.
It focuses every process, function and relationship of
the organization on a single purpose, harnessing the
power and potential of customers to fuel profitable
and sustainable growth. The divisions between front,
middle and back offices are collapsing. Future-focused
businesses are shaping new operating models in which
every part of the organization, from sales to the supply
chain, is working with every other element to deliver
against the customer promise.

KPMG Ignition Centers are our most innovative spaces.

They facilitate new ways of working with one another
and our clients, help us to compete for the new types of
talent required by 21st Century Enterprises, and serve
as the storefront for our most innovative solutions.
With locations that span the United States and KPMG
International member firms, we invite you to experience
the future at one of our KPMG Ignition Centers.

© 2019 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 and logo are registered trademarks or trademarks of Supply chain
KPMG International. platforms 8
Contact Us Rob Barrett
Principal, Supply Chain Leader
KPMG in the US
T: +1 480 459 3535
E: rhbarrett@kpmg.com

Sam Ganga
Principal, Connected Commerce Leader
KPMG in the US
T: +1 312 665 1736
E: sganga@kpmg.com

Chris Foster
Global Lead
Operations Center of Excellence
KPMG International
T: +61 2 9455 9016
E: cfoster@kpmg.com.au

Some or all of the services described herein may not be

permissible for KPMG audit clients and their affiliates.

read.kpmg.us/futureofsupplychain

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information
without appropriate professional advice after a thorough examination of the particular situation.
2019 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 and logo are registered trademarks or trademarks of KPMG International.
CREATE. | CRT117325 | November 2019