KPMG is making strides in the construction sector by introducing a new digital tool aimed at enhancing supply chain resilience. Dubbed KPMG Supply Chain Predictor, this innovative solution offers comprehensive, real-time oversight of a company’s supply chain, underpinned by advanced predictive analytics and artificial intelligence. The tool’s primary function is to identify potential disruptions before they occur, enabling companies to better prepare for risks and seek alternative suppliers when necessary.
As Richard Masters, a representative from KPMG, explained, “What this tool does is map out your supply chain across developments and monitor public information and other sorts of insights to be able to identify in real-time the vulnerabilities in your supply chain.” This proactive monitoring stands in contrast to many existing systems that rely heavily on historical data, marking a significant evolution in supply chain management.
The importance of such tools cannot be overstated, particularly in a UK construction sector beset by a myriad of challenges. Factors such as resurgent demand for residential and infrastructure projects, compounded by disruptions from the COVID-19 pandemic, inflationary pressures, and policy shifts, have strained supply chains to their limits. Recent observations have indicated a notable decrease in growth alongside increased material prices, further emphasising the necessity for construction firms to adapt and rebuild relationships with their suppliers.
The current scenario has led to a ‘perfect storm’ for the industry, as highlighted in various analyses, including commentary on the ongoing HS2 project and the broader implications of Brexit, which have constrained both labour and material availability. The construction industry has found itself grappling with escalating demands while simultaneously struggling to secure the materials needed to meet these demands. Builders are facing urgent shortages, affecting project timelines and overall productivity.
Furthermore, experts suggest that overcoming these complexities requires more than just reactive measures. The utilisation of data analytics and smart technology platforms is increasingly seen as essential for enhancing supply chain resilience. KPMG’s tool, while currently being piloted in the UK, is already proving its worth across multiple sectors in other countries. This comprehensive digital approach is designed to help organisations anticipate workflow interruptions and respond swiftly, thereby safeguarding their operational capabilities.
The incorporation of advanced technologies like KPMG Supply Chain Predictor could well turn the tide for construction companies, allowing them to navigate a landscape fraught with uncertainties. As the sector endeavours to adapt to lingering challenges, tools focused on predictive analytics and real-time data will likely become indispensable assets, enabling firms to not only survive but thrive amidst the chaos.
As construction professionals grapple with these emerging complexities, the benefits of embracing such innovative solutions are clear. Firms that invest in robust supply chain management systems stand a better chance of mitigating risks and ensuring the continuity of their projects, ultimately fostering a more resilient construction industry for the future.
Reference Map
- KPMG’s announcement of the Supply Chain Predictor
- Overview of supply chain challenges in the UK construction sector
- Report on supply chain issues impacting UK construction firms
- Analysis of construction supply chain management complexities
- Discussion of material and labour shortages
- Introduction to KPMG Supply Chain Stability Index
- Description of KPMG Australia’s Supply Chain Predictor technology
Source: Noah Wire Services
