Analysis of KPMG Australia's Business Logistics and Supply Chain

This report provides a comprehensive analysis of KPMG Australia's business logistics, focusing on key areas such as supply chain management, strategic sourcing, demand forecasting, and Enterprise Resource Planning (ERP) systems. The report begins with an executive summary of KPMG's global operations and its presence in Australia. It then delves into KPMG's supply chain management practices, emphasizing the importance of strategic sourcing and its role in cost reduction while maintaining quality and ethical standards. The report also examines demand forecasting techniques, including both quantitative and qualitative approaches, and explores the implementation of ERP systems to integrate and streamline business processes. Furthermore, the report highlights the significance of sustainable supply chain practices and provides recommendations for improvement. The report's structure includes an introduction, an overview of KPMG Australia, a detailed analysis of its supply chain management, and a conclusion. This report is valuable for students and professionals interested in understanding the intricacies of business logistics and supply chain management within a leading global firm like KPMG.

Running Head: BUSINESS LOGISTICS 0
Business Logistics
8/26/2019

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Executive Summary
KPMG states for ‘Klynveld Peat Marwick Goerdeler’ is a multinational professional services network
and comes under big four companies. It has solid partnerships with Amazon, Microsoft and Google.
Each KPMG domestic company is an autonomous lawful entity and is an associate of KPMG
International Cooperative, a Swiss body registered in the canton of Zug in Switzerland. Under Swiss
law, KPMG International altered its authorized arrangement from a Swiss association to a
cooperative. The study further recommends about R&D and Export management programs and the
satisfaction of cliental needs.

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Table of Contents
Introduction...........................................................................................................................................3
KPMG Australia....................................................................................................................................3
Supply chain management of KPMG....................................................................................................5
Importance of SCM...........................................................................................................................7
Sustainable Current Supply Chain.........................................................................................................7
Recommendations.................................................................................................................................8
Conclusion.............................................................................................................................................9
Bibliography.........................................................................................................................................10

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Introduction
The study includes detailed version of KPMG’s Australia client base, competition, marketing,
annual statements overview. Further it includes current supply chain management of KPMG
and discuss about its sustainability in the future. The term ‘KPMG’ stands for ‘Klynveld Peat
Marwick Goerdeler” which was selected when KMG (Klynveld Main Goerdeler) combined
in 1987 with Peat Marwick. In the past it has been renowned by being appraised as one of
the topmost companies for employed mothers, graded on Fortune magazine list of hundred
paramount companies, was chosen employer among Big four accounting firms, and named as
best company by Times. KPMG is a worldwide network of qualified companies that provide
organizations with a complete variety of services across a broad spectrum of businesses,
government and non-profit segments. Audit, Assurance & Risk Consulting, Deals, Tax &
Legal, Management Consulting, and Innovation & Digital Solutions are our facilities areas.
KPMG Enterprises also tailors its amenities to satisfy the distinctive requirements of mid-
sized, rapidly increasing and family –possessed industries. It works in 153 nations and work
in member companies around the globe with more than twenty thousand individuals. The
KPMG network’s autonomous member companies are affiliated with the Swiss-based KPMG
International Cooperative. The expertise works with renowned firms to support solve
complex challenges and strategies are based on association and innovation, with individuals
to provide real and viable services (Blasco, et al., 2018).
KPMG Australia
KPMG together with Deloitte, Ernst & Young (EY) and Pricewaterhouse Coopers (PWC) is a
global specialized services system and unique of the Big Four secretarial organizations.
KPMG based in Amstelveen, the Netherlands hires people and has three services outlines:
economic review, tax and consultancy. It further divides its levy and advisory facilities into
different service organizations. It is organized into three business lines – Audit, Advisory and
Tax (Chiara, et al., 2018). KPMG Customer, Brand and Marketing Consultant specializes in
assisting organizations reach a ‘client first’ agenda to drive required economic and
operational results. They assist organizations deliver the transformative actions needed to
attain customer centricity, allowing more favourable experiences to be created in combination
with enhanced economic value. KPMG launched a program acknowledged as Flexible
Futures in the United Kingdom. These enabled employees to volunteer to either send them on

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a sabbatical at thirty per cent wage for up to twelve weeks or decrease their employed times
to four days a week (Dollery & Joseph , 2017).
Each KPMG domestic company is an autonomous lawful entity and is an associate of KPMG
International Cooperative, a Swiss entity registered in the canton of Zug in Switzerland. In
2003, KPMG International altered its lawful structure from a Swiss association to a
cooperative under Swiss law. This framework in which the supportive offers support services
only to the affiliate companies is comparable to that of other professional organizations. Bill
Thomas is the world chairman of KPMG. Formerly Senior Partner and CEO of KPMG LLP,
the member company of KPMG in Canada. Several member companies of KPMG are
recorded as multidisciplinary organisations that also offer legal services in certain
jurisdictions (O'Leary, 2016). Throughout the year, KPMG Australia produced four
purchases focused on helping customers to optimize development and effectiveness. KPMG
purchased engineering asset management company, Relken, recognizing the significant
performance effect physical assets have on organizations (Forsyth, et al., 2019).
KPMG has been acknowledged as a worldwide ‘leader’ and one of the top companies in
‘Sourcing Strategy Consulting’. It relates to the company’s consultation to customers on the
basis of mixture of depth and scope and degree of complexity of commitment models across
sector. KPMG sourcing strategy aims to capitalize on fresh working models of procurement
supplied through Powered Procurement structure of the company. The Board, the group’s
primary governance body, accountable for the group’s development and long term prosperity
to ensure it adheres to its purpose, vision and KPMG values, and it’s true to them. It gives the
group leadership, endorses the approach of the group, and oversees its implementation and
monitors efficiency against the business plan of the group (Thorlakson, et al., 2018). In
agreement with the Polish Accounting Act, IFRS and other accounting standards, they
compile fiscal statements, group commentary packages and further economic reporters. It
assists customers to fulfill stakeholder’s expectations regarding credible, transparent and
helpful economic data. They advise on how to enhance financial reporting systems and
procedures to preserve an adequate equilibrium between effectiveness, risk and control in
offering adequate and consistent financial data (Raff, et al., 2016). Demand forecasting is a
systematic and scientific estimate of a product’s future demand. Simply, estimating future
sales or demand for a product is referred to as demand forecast.

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With Microsoft, Google and Amazon Web Services, KPMG has powerful partnerships. They
encounter enhanced demand during FY18 to help customers change their companies and
operate reproductions with safe cloud computing, machine knowledge, enterprise flexibility
and sophisticated analytics techniques. KPMG has several customers, including big
protection companies and banks such as Codan, Trygg-Hansa, If, Skandia, Jyske Bank and
Nordea, in the financial services industry (Verdecchia, et al., 2017). KPMG uses the finest
tax expertise to advance important understandings by leveraging tax data analytics. It is a
honored sponsor of the Greentech Challenge; KPMG is vigorously engaged in providing
auditing pro bonus and also providing advice on setting up business models for maintainable
start-ups that will assist their philosophies thrive and become economically sustainable (King
& Bartels, 2015). KPMG consider implementing an Enterprise Resource Planning (ERP)
solution such as MS Dynamics, SAP or Oracle to help integrate and streamline business
processes and related technology tracks in order to obtain the required return on investment.
This enables organizations realize potential efficiencies of process and control, cost cuts and
efficient management of risk and compliance.
KPMG’s shared and global in-house services include opportunity feasibility assessment,
target operating model, key performance design indicator, and governance design. Its
outsourcing includes target operating model design, contract negotiations and governance
design pricing.
Supply chain management of KPMG
Supply chain management (SCM) is the extensive range of actions required to design, control
and perform the flow of a merchandise, from fresh material purchase and production through
supply to the end client, in the most rationalized and cost operative manner possible (Razak,
et al., 2016). Effective supply chain management can accelerate corporate development and
profitability, boost operating effectiveness, and provide clients with fresh and distinguished
value. In the midst of the ever-changing technological, economic and regulatory problems of
today, it required across all sectors. KPMG recognizes the complexities of supply chains
design and management and our strategic company strategy helps to generate and maintain
bottom-line value across the broad supply chain- from providers to clients (Choudhury,
2017). The consultants have aided customers in expanding their geographic footprints from

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both a market penetration and a cost-effectiveness viewpoint, making the flexibility of
outsourced manufacturing and logistics activities more demand- driven in their supply chain
planning and execution procedures achieving higher visibility and transparency in decision-
making, reducing the risk income from probable supply chain disruption, enhance working
capital and functioning costs with new tools and improved processes (Messina, et al., 2018).
Cyber-attacks, ethical breaches and non-compliance are just some of the hazards that
organizations may face as they develop supplier networks around the globe and increasingly
share delicate data through technology. A problem in any of these fields – whether local or
distant along a provider network – could result in serious economic and reputational harm.
Stakeholders and the media are particularly scrutinizing incidents concerning data privacy,
human rights, labor rights and the environment. Companies are also facing the practical
challenge of handling numerous agreements with distinct terms and conditions for suppliers.
They could lose value and competitiveness as a consequence of the quantity and complexity
of agreements. Supply chain is explored in these series finding how organizations mitigate
hazards, using creative methods to better handle providers, and also extracting more value
from agreements. Robotics allowing customized ordering, returns and chain management
with Chat bots and optimizing the flow and procedure of warehouses. Auto home
replenishment- customers no longer have to maintain a shopping list and trudge through the
pantry staples supermarket. Facial identification technology-design consumer meals based on
prior orders and the perceived mood of customers. Driverless cars, drones and on-board
technology-GPS and track and trace devices optimize transportation paths to decrease
congestion and provide significant efficiencies for last-mile delivery economies. Smart labels,
QR codes and block chain technology allowing customers to scan goods and use particular
data to better comprehend product provenance and efficiency in the supply chain.
Cyber criminals and hackers always seek the simplest path to the systems and information of
an organization. Often the shortest route is not through the front gate, but through the
stronger connections that make up a supply chain that is digitally allowed. Organizations that
recognize and handle the scope of their interconnected supply chains and their vulnerability
and weakness points are better positioned to avoid and handle problems. Key problem are :-
Trust is frequently handed over to third-party suppliers without adequate due diligence, risk
assessment or inspection of company client expectations to show compliance with safety
standards are increasing machinery and equipment dependent on old, technology can be hard
to secure. Tax regulations are evolving quicker and more complexly in distinct ways. Global

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momentum is guided by high-profile organizations such as the G20. The OECD, the EU and
the UN that weigh on worldwide taxation freedoms. Many ideas are aligned, but goals may
vary from group to group, and the execution of change may differ considerably from country
to country. The threat of reputational harm is inherent in the supply chain danger. If one
provider engages in bad ethical or environmental operations, the effect on any associated
organizations could be disastrous, explain Adrian King, Global Head of Sustainability
Practice at KPMG.
The conjunction with deepening supply chain complexities, they are also seeing changing
expectations. Consumer’s care where their products come from and regulators impose on
organizations in this regard. The businesses are increasingly held publicly responsible for
their ‘first, second, third and fourth-tier providers’. Child labor may be a socially accepted
norm in some regions, but supply chains are just as powerful as their weakest connection.
The vulnerability of reputation along any portion of the chain generally affects the products
facing the consumer. People don’t want to work for business that is even two or three
business arrangements away from violations of human rights, child labor or other issues.
High- profile consumer-facing organizations are responsible for having very strict plans to
react openly if things go wrong. When the media are camping outside and an NGO is
threatening to interrupt your AGM, it’s not time for the first moment to think about these
problems. False movements could have long-term effects on the ability of the organization to
regain its reputation. It’s not that simple to withdraw company from someone with poor
behavior. It is anticipated that companies will assume liability for their entire supply chain
and enhance conditions throughout their supply chain.
Importance of SCM
Supply chain helps KPMG in bringing advantages like fresh efficiencies, greater revenues,
reduced expenses and enhanced cooperation. SCM allows businesses to handle demand
better, carry the correct quantity of inventory, cope with disruptions, minimize expenses and
satisfy client demand in the most efficient manner possible. Through suitable policies and
software, these SCM advantages are accomplished (Erdil & Hikmet , 2017). Customer
service can be improved by SCM operations. Effective supply chain management is capable
of ensuring customer satisfaction by making certain products accessible at the right moment
at the right place. SCM can also enhance customer satisfaction by delivering products on time

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to customers and offering quick service and support whenever necessary (Reefke & David ,
2017).
Sustainable Current Supply Chain
In today’s competitive setting, Australian consumer products organizations need to transform
their supply chain management to guarantee that they exceed client expectations are
integrated with their provider network, and use information and analytics capacities to gain
profound insights into their company. With the Amazon’s imminent launch into Australia
known for its wide spectrum of products, shipping effectiveness and velocity client service
expectations are set to raise further (Ardito, et al., 2019). Australian distributors have the time
to review their supply chain management (SCM) to guarantee that they are prepared for their
fresh setting. The scope for improvement is vast to improvements in the design of supply
chain processes and information systems. Australian consumer goods firms have complex
supply chains, and if legacy technology is involved, improvement measures are not always
simple (Cevik & Secil , 2015).
An advanced supply chain system can allow greater collaboration between supplier, customer
and other relevant entities. When the supply chain with inventory visibility and orders
provide timely updates on delivery and price modifications, this streamlines the process and
removes manual intervention. With Microsoft Dynamics 365, KPMG worked with the Swiss
vitamins business to assist integrated their SCM scheme with providers and clients (Reuter, et
al., 2017). Not only did the technology improve SCM’s effectiveness, it also substituted its
disintegrated legacy systems and activated inclusions, providing efficiencies through timely
and precise company insights. Microsoft Dynamics 365 enables organizations integrate their
supply chain data seamlessly with their economic data and facilitates statutory reporting for
multi-company and multi-country companies (Kwiatek & Thanasi, 2019). With better
insights into how finance and supply chains work together, organizations can identify a price
to serve that analyzes the profitability of products, suppliers and customers (Brusset, 2016).
Data and analytics must be given adequate emphasis otherwise it will have a data-based
system but not use its complete potential (Lacity, 2017). Brunekreef provides an illustration
of how big data can help organizations to be predictive and proactive in achieving better
results: ‘By sourcing products from Asia, it understands precisely what the weather will be
like on the trip and the status of the receiving port by using big data (Cole, 2017). New

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technology is constantly entering the supply chains of the world, from driverless trucks to
drone technology and the Internet of Things (IOT). While independent drones are still in the
future as a reliable delivery technique, they can presently be used to inspect supply chain
devices, such as a conveyor belt, to help solve and maintain problems (Khan, et al., 2017).
The chain of supply sector was in the early stages of adopting a type of IOT – radio
frequency identification (RFID) - but for most organizations the price was prohibitive.
Recommendations
Introduction of the Research & Development (R&D) Tax Incentive one percent intensity
threshold that can eliminate R&D allegations by many present non-refundable R&D offset
businesses spending less than one per cent of their annual R&D expenditure. The extension
of financing for Cooperatives Research Centers (CRCs ) , CRC initiatives and Industry
Growth Centers (IGCs) will be great for sectors that ISA believes to have competitive power
and strategic priority, ‘but may mean less financing for niche sectors or that ISA does not
consider a strategic priority. Increased financing for the Export Market Development Grant
(EMDG) program together with more trade missions and tiny and medium sized enterprise
(SME) promotions. The implementation of a cooperation premium for government study
institutions spending as suggested in the 3F Report. It appears that this would only be
available to companies that have access to the non-refundable R&D tax offset and it is
uncertain whether this would be accessible if the business intensity edge.
Conclusion
KPMG strive to balance with danger and innovation the hard edge of economic results and
returns on investment. The knowledge of the changing aspects between value creation and
security and the limitations of innovation must be continually relaxed as markets and
industries are in constant motion. KPMG’s worldwide network of plan professionals provides
professional support, philosophies and vision in sector, cross-sector and cross boundary. The
company draws broad business experience across huge scale alteration, change management,
unions and acquisitions, business and economics restructuring, tax organizing and risk
administration situations.
Thus as industry convergence sets sectors and organizations on collision courses, fresh
markets, proposals, channels, techniques and behavior pose both possibilities and threats.
KPMG research and experience helps to drive the conviction that administrations that are

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courageous, grab change and willing to reconsider their portfolios of companies,
marketplaces, proposals and products, clients and stations will have important opportunities.

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