FOCUS 18
“These luxury brands have ever-greater ranges of models targeting ever- smaller market niches and requiring ever-more parts – which of course is placing additional pressure on parts manufacturers. These suppliers may also already be at full capacity and struggling to meet surging demand from high- growth export markets.
Numerous routes are available to suppliers seeking fi rmer foundations. For example, Covpress, a company in Canley in the UK which makes body panels for the likes of Jaguar Land Rover (JLR) and employs more than 450 people was recently sold, with corporate fi nance support from KPMG, to Shandong Yongtai, based in northern China. The buyer wants to use the deal to help it break into the JLR supply chain3
to be monitored to support swift, evidence-based supply chain risk decision making. Around 8,000 suppliers in 55 countries are already registered and submitting operational data using Vontik.
“This industry is synonymous with single source, just-in-time, supply chains. This means lower costs and higher levels of effi ciency. But it’s also the most fragile form of supply chain, so risk management needs to be – and continue to be – world class in order to avoid the fi nancial and reputational damage which can be caused. Key stakeholders as diverse as shareholders and customers awaiting delivery of their new car are quick to feel the impact when supply chain risks become supply chain realities.”
. In addition, it should provide
Covpress with greater fi nancial fi repower and a multi-national reach, which in turn offers greater reassurance to their OEM customers.
A global OEM has also turned to KPMG to work collaboratively with its suppliers to obtain additional fi nancial and operational data using KPMG’s Vontik software. This resulted in a signifi cant improvement to the supplier information which was monitored and reduced supply chain risks as a result.
Andrew adds, “Vontik is a web-based business intelligence software tool licensed by KPMG to OEMs and is unique in the marketplace since it’s already being used in the automotive industry by numerous OEM’s including Ford, Chrysler, Fiat and Honda as well as many Tier 1 suppliers on either a regional or global basis. It enables the fi nancial health of the supplier base and other key operational performance measures
3
http://www.bbc.co.uk/news/uk-england-23438103 To fi nd out more, please contact:
Andrew Burn Restructuring T: +44 121 609 5966 E:
andrew.burn@kpmg.co.uk
POORLY PLANNED INCREASES IN ACTIVITY WHERE CASH FLOW ISSUES ARE NOT TERMINAL, TYPICALLY LEAD TO SUPPLY CHAIN DISRUPTION OR QUALITY ISSUES.
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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SUPPLY CHAIN
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