CEOs fail to heed supply chain lessons from horsemeat

Posted on 14 Mar 2013 by Tim Brown

More than a third of Chief Executives are disengaged with their supply chain, according to a survey of senior supply chain managers, carried out by the Chartered Institute of Purchasing and Supply (CIPS).

The CIPS survey also found almost 50% of companies do not have a comprehensive supply chain risk mitigation strategy.

Over 50% of supply chain professionals thought the horsemeat saga was a problem caused by the supermarkets squeezing suppliers. In addition, almost 90% of supply chain managers feel regulators do not sufficiently understand supply chains.

Positively, after the horsemeat crisis, 60% of supply chain managers reported taking supply chain risk more seriously than they did previously.

“The horsemeat scandal highlighted the damage that can be caused when supply chains are not adequately managed,” David Noble, CIPS Chief Executive. “The reality is, supermarkets are among the most advanced supply chain managers in the corporate world and though there are exceptions, many have fallen woefully short.

“It is only a matter of time before other sectors suffer a similar fate,” he said. “These survey results are disappointing, but not surprising, given how few CEOs and boards take supply chain issues seriously.”