The Chartered Institute of Purchasing & Supply calls for a professional licence to practise to avert future crises and protect the public

Monday, October 14, 2013

The Chartered Institute of Purchasing & Supply has today called for procurement and supply chain professionals to earn a licence to practise to protect the public. This call comes in the wake of recent supply chain and procurement failures which have seen food chain contamination and loss of lives, leading to a public outcry for change and improved accountability.

CIPS, the leading international body representing purchasing and supply management professionals, has also published a policy statement setting out the guiding principles of the licence to be launched at their annual conference in London. The licence to practise would ensure that senior procurement and supply chain managers would be required to have a professionally recognised licence, in a manner akin to the licencing of the accountancy profession. The licence is seen as fundamental to the stability of the global economy as multinational companies are increasingly exposed to international risks which can cause seismic shocks to their earnings, reputation  and share prices when a supply malfunction occurs.

Unprecedented events in recent years, from natural disasters such as the tsunami in Japan, to political unrest in the Middle East, not to mention fraud and modern slavery in corporate supply chains, underline the prevalence of risk in supply chains. Each new, emerging risk impacts consumers negatively in a different way. It is because of this, a licence to practise is so critical in ensuring trained and skilled professionals are in place as supply chain protectors.

Calling for a licence to practise, David Noble, Global Chief Executive of the Chartered Institute of Purchasing & Supply said:

“Supply-side risk is getting out of control. There is an acute need for the procurement and supply profession to be formally licenced in order to protect the public. This was brought into sharp focus earlier this year with the horsemeat fiasco in the UK and the Bangladesh factory tragedy, which put a human price on the failure to understand and make provision for risk in the supply chain. The industry must now respond to these risks and ensure professionals managing supply chains are adequately trained to do so and ensure accountability which has been absent for too long. A licence for the profession gives it true professional standing and individuals the knowledge they are adhering to best practise.”

Trudy Salandiak, PR Manager, trudy.salandiak@cips.org on 01780 761576 or 0755 4400 731 Edward Jones, H+K Strategies, Edward.jones@hkstrategies.com, 020 7413 3217

Survey Results

The survey results were as follows:

1. Are you taking supply chain risk more seriously following the horse meat scandal and the Rana Plaza factory disaster?

Yes                                               67.5%
No                                                 32.5%

 

2. Which of these instances had the biggest impact on attitudes towards supply chain in your business?

Horse meat scandal                      35.0%
Rana Plaza factory disaster          29%
Neither                                          36%

3. Has your CEO and/or board taken a more proactive role engaging with your procurement team on supply chain risk?

Yes                                                47.5%
No                                                  52.5%

4. Do you have a supply chain risk mitigation strategy all the way down your supply chain?

Yes                                                 46%
No                                                   54%

5. In your opinion, have the horse meat and Bangladesh factory collapse issues changed treatment of suppliers (in your business or in the wider world)?

Unchanged                                     45.0%
Changed for the better                   52.5%
Changed for the worse                   2.5%

6. Do you think there should be more regulation of supply chains?

Yes                                                 71%
No                                                   29%

7. Do you think a code of conduct would improve accountability in supply chains?

Yes                                                 79%
No                                                   21%

NB: The survey is based on responses from 80 senior supply chain managers.

 

This extract has been taken from the CIPS website. If you would like to read more you can access it here.

The Chartered Institute of Purchasing & Supply calls for a professional licence to practise to avert future crises and protect the public

Monday, October 14, 2013

The Chartered Institute of Purchasing & Supply has today called for procurement and supply chain professionals to earn a licence to practise to protect the public. This call comes in the wake of recent supply chain and procurement failures which have seen food chain contamination and loss of lives, leading to a public outcry for change and improved accountability.

CIPS, the leading international body representing purchasing and supply management professionals, has also published a policy statement setting out the guiding principles of the licence to be launched at their annual conference in London. The licence to practise would ensure that senior procurement and supply chain managers would be required to have a professionally recognised licence, in a manner akin to the licencing of the accountancy profession. The licence is seen as fundamental to the stability of the global economy as multinational companies are increasingly exposed to international risks which can cause seismic shocks to their earnings, reputation  and share prices when a supply malfunction occurs.

Unprecedented events in recent years, from natural disasters such as the tsunami in Japan, to political unrest in the Middle East, not to mention fraud and modern slavery in corporate supply chains, underline the prevalence of risk in supply chains. Each new, emerging risk impacts consumers negatively in a different way. It is because of this, a licence to practise is so critical in ensuring trained and skilled professionals are in place as supply chain protectors.

Calling for a licence to practise, David Noble, Global Chief Executive of the Chartered Institute of Purchasing & Supply said:

“Supply-side risk is getting out of control. There is an acute need for the procurement and supply profession to be formally licenced in order to protect the public. This was brought into sharp focus earlier this year with the horsemeat fiasco in the UK and the Bangladesh factory tragedy, which put a human price on the failure to understand and make provision for risk in the supply chain. The industry must now respond to these risks and ensure professionals managing supply chains are adequately trained to do so and ensure accountability which has been absent for too long. A licence for the profession gives it true professional standing and individuals the knowledge they are adhering to best practise.”

Trudy Salandiak, PR Manager, trudy.salandiak@cips.org on 01780 761576 or 0755 4400 731 Edward Jones, H+K Strategies, Edward.jones@hkstrategies.com, 020 7413 3217

Survey Results

The survey results were as follows:

1. Are you taking supply chain risk more seriously following the horse meat scandal and the Rana Plaza factory disaster?

Yes                                               67.5%
No                                                 32.5%

 

2. Which of these instances had the biggest impact on attitudes towards supply chain in your business?

Horse meat scandal                      35.0%
Rana Plaza factory disaster          29%
Neither                                          36%

3. Has your CEO and/or board taken a more proactive role engaging with your procurement team on supply chain risk?

Yes                                                47.5%
No                                                  52.5%

4. Do you have a supply chain risk mitigation strategy all the way down your supply chain?

Yes                                                 46%
No                                                   54%

5. In your opinion, have the horse meat and Bangladesh factory collapse issues changed treatment of suppliers (in your business or in the wider world)?

Unchanged                                     45.0%
Changed for the better                   52.5%
Changed for the worse                   2.5%

6. Do you think there should be more regulation of supply chains?

Yes                                                 71%
No                                                   29%

7. Do you think a code of conduct would improve accountability in supply chains?

Yes                                                 79%
No                                                   21%

NB: The survey is based on responses from 80 senior supply chain managers.

 

This extract has been taken from the CIPS website. If you would like to read more you can access it here.