Supply chain strains and strategy: A boardroom perspective

The KPMG BLC and Eurasia Group explore systemic and geopolitical factors shaping the global supply chain environment and the move toward sustainable supply chains.

In light of the severe and widespread supply chain disruptions caused by COVID-19, many companies are reassessing their supply chain strategies, identifying supply chain risks and vulnerabilities, and designing and implementing plans to improve supply chain resilience and sustainability.

Indeed, the Russia-Ukraine war will no doubt exacerbate supply chain pressures for many companies, depending on their sector and global reach. And while this paper was written prior to the invasion, its insights and board oversight considerations still hold true.

“Whether it’s relying on suppliers in countries with political instability or sanctions; grappling with pandemic-disrupted logistics; ensuring that downstream suppliers are not creating environmental, social, and governance (ESG) risk to the organization; or addressing risk arising from new regulations impacting third-party data security, an organization’s supply chain is subject to, and creating risk…more than ever.”Not surprisingly, two-thirds of global chief executives responding to KPMG’s recent CEO Outlook Survey said they are rethinking their supply chain strategy in the wake of COVID-19, with a particular focus on supply chain risk and resilience.

The impact of recent events in Ukraine—including potential disruption to energy supplies, transportation networks, and the availability of raw materials, as well as the potential for cyberattacks impacting global supply networks—will no doubt intensify this focus.

Oversight of the company’s supply chain risks and sustainability efforts presents boards (and board committees) with a challenging and complex set of issues both near- and longer-term, with major implications for risk and reputation.

To help boards in their oversight efforts, the KPMG Board Leadership Center and Eurasia Group offer insights on the systemic and geopolitical factors shaping the global supply chain environment, as well as the actions and expectations driving companies to accelerate their progress toward clean and sustainable supply chains.


1 Building a Bridge Between Compliance and Supply Chain Management, Navex Global's 2021 Top Ten Risks & Compliance Trends, May 4, 2021.

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