The majority of manufacturing companies operating in Germany have global supply networks, worldwide sales organisations and strategically located production and service sites.
These sometimes very complex value creation networks require continuous monitoring of the procurement and sales markets, including the development of all relevant framework conditions, in order to be able to take effective measures to minimise risks.
Flexible product life cycles, a growing number of variants and increasing cost and competitive pressure have been characterising the production and manufacturing-oriented risks in the industry for years.
The industry is also currently experiencing a major disruption to global supply chains due to geopolitical and global economic shocks. The resulting supply bottlenecks, production stoppages and highly volatile logistics and raw material prices are plunging manufacturing companies into a resilience and efficiency dilemma.
The aspect of "maintaining production operations" (business continuity) takes on an unprecedented importance, as long-term supply contracts, buffer stocks in the warehouse or dual-sourcing strategies can increase security of supply, but at the same time usually have an impact on margins.
In particular, the significant rise in energy prices is affecting almost all sectors of the economy and making production and processing in the German economy more expensive - both for customers and for partners in the industry.
Further challenges along the supply chain await manufacturing companies as a result of stricter due diligence requirements for compliance with human rights, stricter climate protection laws and legal regulations on energy conservation.
Security of supply and the resilience of supply chains are currently the top priorities for decision-makers. Manufacturing companies want to be more agile in future so that they can react more quickly to changes and make appropriate decisions. Digitalisation can make a decisive contribution here. The result is that the pandemic, sustainability requirements and geopolitics are prompting managers to focus even more than before on a dual transformation: intelligent digitalisation and a focus on environmental, social and governance (ESG) goals.
Driven by the shortage of skilled workers and the increasing expectations of employees, customers and investors, investments in appropriate technologies are necessary to make the fulfilment of targets visible, measurable and controllable.
In times of many new geostrategic tensions and a lack of political solutions for older crisis hotspots, the question of the overall social responsibility of entrepreneurial action arises more than ever.
KPMG's specialists support you in mastering the current and future challenges in your value creation network. Our clients benefit from the many years of industry-specific experience of our experts and the close cooperation between our various service areas.
Partner, German Head of Industrial Manufacturing, Head of Tax Region Hanover/Bielefeld/Münster
KPMG AG Wirtschaftsprüfungsgesellschaft
Partner, Performance & Strategy, Enterprise Performance
KPMG AG Wirtschaftsprüfungsgesellschaft
Partner, Performance & Strategy, Enterprise Performance
KPMG AG Wirtschaftsprüfungsgesellschaft
Partner, Audit, Regulatory Advisory, Sustainability Reporting & Governance
KPMG AG Wirtschaftsprüfungsgesellschaft
