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Business leaders 'must reorganise supply chains'
UK businesses have been urged to carry out a full transformation of their supply chain where necessary, rather than adopting short-term measures.
A new report from KPMG, entitled Supply chain agility: managing change, found that many organisations admit their supply chains are no longer fit for purpose in the face of changing consumer demands and economic uncertainty.
However, only a small number of companies are taking the necessary steps to reorganise their operations for long-term success.
"Now is not the time to batten down the hatches and weather the storm," said Andrew Underwood, head of supply chain at KPMG Management Consulting.
"The time is right for organisations to adopt an agile approach to their supply chain and accept that the 'one-size-fits-all' approach is no longer relevant," he added.
KPMG's research also discovered that many executives are worried about the prospect of rising costs beyond their control, which could threaten attempts to reduce overheads.
Increased fuel costs, the rising value of property in emerging markets and carbon taxes were all cited as causes for concern.
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