Call for OEMs to be better ‘stewards’ of their supply chains

The report, 'Rebuilding the UK manufacturing supply base', says that OEMs have a key part to play in the sector's resurgence and they should become "better stewards" of their supply chains. Professor Alan Braithwaite (pictured), director of Cranfield's Supply Chain Research Centre, said: "We are not arguing that uncompetitive suppliers should be propped up, rather they should be actively encouraged to improve. "The strategy of large UK manufacturing enterprises to seek low-cost suppliers around the globe is at direct odds with the approach taken in developed countries such as Japan and Germany." The report also highlights that, because government policies towards manufacturing over the last decade have focused on improvements in productivity and value add, this has led to the loss of nearly one million jobs and 30,000 firms. Some of these, says the report, could have been averted. It recommends that two things must happen: * The UK government must actively support the sector with policies to develop the correct tax and regulatory frameworks, encourage R&D, and improve access to finance, skills and knowledge * OEMs at the head of supply chains need to consider switching to indigenous supply as this leads to a competitive advantage because of reduced risks and increased responsiveness. Prof Braithwaite added: "Many of the measures proposed in this report can be found in initiatives from the TSB and the HM Treasury, but the scale of the potential from providing co-ordinated support to SMEs is truly apparent from this research. "The government should actively integrate initiatives and drive measures to make UK manufacturing a winner again."