6 October 2011 | Adam Leach
Procurement professionals play a central role in dictating the global economic crisis and should perhaps be feared by governments, according to Faisal Islam.
Speaking at the CIPS 2011 Conference, Islam, Economics Editor, Channel 4 News, explained that with the increasingly globalised nature of supply chains there is almost a butterfly effect aspect to the current climate, where a reduction in purchasing in one country can impact on the other side of the world.
Describing the role of procurement professionals, he said: “You guys are the gear sticks or maybe the gears, the transmission system which transfers the financial shocks and fragility and intangible sentiment into real economic activity and occasionally lack of economic activity.”
He told the audience in the main auditorium at Kings Place about a trip he had taken to a Singapore fishing town, which had been hit hard by the global crisis.
Describing his thoughts on how the crisis became global, he said: “These individual actions around the world all come together.” Describing the rising importance of procurement, Islam said: “The big picture for me is, I think, we in the media need to understand you better and perhaps governments should fear you.”
Earlier this year Faisal told SM: “The impact of just-in-time delivery and procurement on transmitting global economic shocks around the world is quite remarkable. Shifts in economic temperature are spreading far more quickly as a result of super-fast procurement that’s sensitive to changes in demand – its impact is quite profound. You saw that in Japan: suddenly you have this knock-on effect globally that few could have predicted.”
☛ For more details see the live blog from the conference on 6 October.