Supply chain managers spending too long on compliance

Its survey, of more than 100 UK supply chain professionals in manufacturing companies, finds 84% in that league, while the remaining 16% suggest they have to spend even longer. More than half (58%) claim to be either concerned or very concerned about operating in an increasingly regulated environment. However, despite spending significant resources on compliance, 30% admit they do not have a risk management strategy for their supply chains – leaving them wide open to serious operational problems and financial penalties. “Supply chains are increasingly complicated, and the fact that those responsible are spending up to 52 working days a year on compliance alone is a serious concern,” says Andrew Kinder, director, industry and product marketing, supply chain management, at Infor. “With the need to dedicate 20% of their working time to supply chain compliance, it’s little wonder that professionals struggle to find time to unlock cost savings, optimise productivity and add value to the business.” He insists that emerging supply chain regulations make a risk management strategy more important than ever. “Organisations are well practiced at deploying risk management strategies for their data centres and mission critical applications, such as order taking and dispatch functions. However they often leave supply chains, which carry millions of pounds worth of assets, exposed,” he observes. “Failure to comply with legislative requirements can be among the most expensive of risks, with financial penalties and damage to reputation posing real threats. These findings demonstrate that supply chain managers need to ensure that supply chain risk management becomes a formal consideration.”