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supply chain management
20 Mar 2015

CIPS: Retail Sector Bullying Giving Procurement A Bad Name

Agencies providing bid writing services should perhaps take note of new research from the Chartered Institute of Procurement & Supply (CIPS) revealing that 88 per cent of supply chain managers believe sector bullying is sullying the name of procurement.

In all, 44 per cent of those asked said supply chain transparency could be improved and should be prioritised by retailers keen to improve their reputations, with 86 per cent saying those involved in the supply chain should have professional qualifications and training.

Tactics such as pay to stay charges were slammed by supply chain managers, with 49 per cent of respondents citing this as the worst example of bullying in the supply chain.

“Consumers want to know that the goods they are buying are procured in a fair and transparent manner. Hiding behind the defence of being a buyer rather than a procurer is an abdication of responsibility,” group chief executive officer of the CIPS David Noble remarked.

Late last year, Premier Foods – which makes Mr Kipling cakes, Ambrosia custard and Oxo stock cubes – came under fire for requesting money from suppliers in order to ensure they could continue to do business with the company.

Speaking to BBC Radio 4’s Today programme, shadow small business minister Toby Perkins observed that Labour has suggested new legislative reforms in order to prevent firms from exploiting suppliers, adding that this exploitation puts those companies that maintain a more constructive relationship with their suppliers at a real disadvantage, leaving them unable to compete.

Businesses operating in the retail sector may wish to change the way they operate in light of these findings from the CIPS.