Wednesday, 29 May 2024
    New report suggest risk to supply chains in Australia right now is to do nothing
    24
    Apr
    member-led

    New report suggest risk to supply chains in Australia right now is to do nothing

    According to KPMG's latest Future of Supply Chain report, Australian businesses need to increase their investment in their supply chain workforce, ESG commitments, and technologies such as AI in order to remain competitive.  

    “Supply chain leaders must drive ESG agendas, get savvy with automation, and prepare for the workforce of the future…while juggling countless macro forces such as new customer demands, rising costs, decarbonisation and keeping up with competitors,” said Peter Liddell, Partner at KPMG Australia.  

    The report highlights that global supply chains are more advanced than those in Australia but also face their own challenges. Other key data results show: 

    • 62% of leaders anticipate the challenge of workforce shortages 
    • As demand for niche services rises, 67% of leaders anticipate it will be challenging to meet customer expectations for speed 
    • 94% are optimistic that digital twins will add efficiency and productivity value. 

    Liddell noted Australian businesses are still in the early stages of investing in advanced automation and AI. With 59% expecting manual activities to become automated,  Liddell concluded, "The biggest risk to supply chains in Australia right now is to do nothing." 

    It is undeniably motivating to seize the day and invest in cutting-edge technologies, however organisations must balance their aspirations for growth with goals for sustainability.  

    At Procurement Australia we believe a holistic approach is a sustainable choice. Collaboration and inclusivity are at the forefront of our efforts, ensuring that all members and the wider community benefit from ethical and sustainable practices from our suppliers. While still future-focused, our tendered contracts and approved suppliers help organisations take a significant step towards being future-ready. Through our procurement gateway, our members can access all our contracts and awarded supplier arrangements, including preferred pricing and upcoming contract events. Selecting the appropriate suppliers and tenders that align with your ESG goals can solidify your organisation’s future. 

    Source: https://kpmg.com/au/en/home/media/press-releases/2023/10/supply-chains-must-be-future-ready-10-october-2023.html