The companies in the sector are facing significant issues in supply chain and logistics globally. KPMG can assist companies in assessing supply shortage, working capital and transportation challenges (both inbound and outbound). Support can also be provided in scenario planning, related to inventory, supply and customer demand.
Companies with decreasing production and revenue are likely to face cash flow and liquidity challenges. KPMG can assist companies in assessing their current cash position and aid them in optimizing their liquidity accordingly.
With manufacturing companies allowing access to their online portals and technologies such as 3D printing to the medical communities and permitting their employees to work remotely, the requirement for cyber security is expected to rise.
As companies in the sector are restarting operations in certain locations such as China, they will need sustainable business continuity plans in place. KPMG can provide Business Continuity Management services to assess potential supply chain disruptions, evaluate upcoming production scenarios, carry out contingency planning, manage crises and draw out strategies to manage shortages.
With governments rolling out several tax incentive measures, KPMG can assist companies in assessing new measures to manage cash flows. Also, with decline in demand and plant shutdowns, the sector is witnessing issues related to employment and labor; KPMG can offer legal services.
Post the crisis, companies are expected to focus on digital transformation to become more agile and responsive. The companies may look to invest in adopting advanced technologies such as artificial intelligence and machine learning, robotic process automation and mobile technology and augmented/virtual reality.
KPMG can assist by providing digital transformation (including industry 4.0) advisory services.
With the large number of employees working remotely, we can assist organizations in identifying the importance of migrating more systems and applications to the cloud, as it offers greater bandwidth and capacity than if the employees are accessing on-premise servers remotely.
With manufacturing companies reducing their profit outlook, an increased focus on cost reduction, efficiencies and revised savings targets can be expected. KPMG can provide assistance in cost reduction strategies, identify low cost support areas and protect net profit.
KPMG’s People & Change management solutions and services could potentially assist tech companies as they operate in remote working conditions.