Regulators don't understand supply chains, say buyers

12 March 2013

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12 March 2013 | Adam Leach

A strong majority of buyers believe regulators don’t have a clear enough understanding of supply chains to provide oversight and avoid disasters such as the horse meat scandal.

A survey conducted by CIPS and Supply Management found 86.2 per cent of purchasers thought regulators don’t have a sufficient understanding of the issues around supply chains, with just 13.8 per cent having confidence in them.

The poll also found 35.8 per cent of respondents felt their CEO and/or board does not engage with the procurement function on risk management strategy.

David Noble, CEO at CIPS, highlighted the horse meat scandal as an example of the damage that can be done when a supply chain is not adequately managed.

“We hope this sorry tale will at the very least ensure supply chains are recognised as one of the most important aspects of a business and adequately scrutinised at every level. Those investors and businesses that do acknowledge this and master their supply chain will succeed, those that don’t will eventually get found out.”

Further findings from the study, which was completed by 109 supply chain managers, included that 53.2 per cent believed a squeeze on suppliers was the cause of the horse meat scandal. It also found 46.8 per cent of respondents did not have a risk strategy along the whole supply chain.

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