As consumers and regulators increase their expectations of a company's ability to manage environmental, social, ethical and safety issues on a life-cycle basis throughout their supply chain, impacts are being felt from primary industry to retail.
In this context securing a sustainable supply is an ever growing challenge and potentially a threat to sustainable growth.
Evolving demand patterns, changes in supply environment, increasing intervention in government policies are impacting supply and demand balance, putting pressure on the resources available and leading to scarcity concerns, as evidenced by supply shortages commodity price increases and high volatility.
Leading companies are already acting boldly to answer these challenges, for instance, by using alternative supplier partnership models, proactively developing suppliers or driving innovation and substituting raw materials. The reward is manifold as the longer-term gains from building a fully sustainable supply chain extend beyond regulatory compliance and customer approval to unforeseen strategic and cost reduction opportunities.
KPMG’s team of sustainability supply chain professionals in member firms around the world can help you to find the right answers and support you in developing a global approach towards sourcing and supplier relationships which take into account the relevant characteristics of specific value chains and a longer term perspective.
21 July 2013 | Business & Industry, North America, Water
Water-related issues in shale drilling are leading to growing and complex policy and regulatory challenges and environmental compliance hurdles that could potentially challenge shale gas production expansion and increase operational costs.