Authored by Pete Hodgkinson
A new survey conducted by CIPS and Supply Management reports that 86.2% of purchasers think regulators don’t have a sufficient understanding of the supply chain industry, and even worse, only 13.8% have confidence in them. These are numbers that we hear all too often in this industry.
Without a practitioner-based deep understanding of the issues affecting supply management, regulators cannot provide the necessary oversight and guidance to avoid and resolve supply-chain crises, like the horse meat scandal, that can then impact the entire business - especially marketing and sales. However, 35.8% of the survey respondents said that they felt their CEO and/or board, does not engage with the procurement function on risk management strategy. An even scarier statistic; 46.8% of respondents did not have a risk strategy along the whole supply chain.
Avoiding a supply chain disaster calls for the help of stakeholders outside of the procurement and supply chain teams. Business leaders, risk/compliance officers, production managers, and externally, suppliers and regulators. All must collaborate to ensure that speed-to-market and quality are not downgraded. If not, their companies might end up making the next headlines.