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Bullying gives procurement a bad name, managers claim

Article shared in our Procurement People LinkedIn Group 

New research suggests that 88 per cent of supply chain managers reckon supplier bullying in retail is a blight on the industry.

Nearly nine in ten supply chain managers think supplier bullying in the retail and supermarket sector is giving procurement a bad name.

Supply chain tractability has been singled out as a major area for improvement, research from from the Chartered Institute of Procurement & Supply (CIPS) found.

Although supply chain professionals praised the retail industry’s speed at bringing new products to market (35 per cent said it was the sector’s single most admirable quality), they raised serious concerns about its transparency. Forty-four per cent of respondents said improvements to supply chain transparency and traceability should be the top priority for retailers looking to repair their reputations, while 86 per cent said everyone involved in retail supply chains should have professional training and qualifications.

The figures follow earlier CIPS research showing that almost three quarters (72 per cent) of British supply chain professionals have zero visibility of their supply chains beyond the second tier, with only 11 per cent able to trace their entire supply chain.

Supply chain managers also shamed controversial ‘pay to stay’ charges as the worst ‘bullying tactic’ being used by retailers to squeeze suppliers. The charges, which force suppliers to pay unexpected fees just to continue supplying goods, were highlighted as the worst example of supply chain bullying by 49 per cent of supply chain professionals.

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