Supply chain risks 'neglected in the downturn'
01/07/2009 15:00:00
Chief financial officers are neglecting supply chain risks during the recession, according to research.
Supply chain risks are being ignored by many chief financial officers (CFOs) during the recession, it has been revealed.
Purchase-to-pay process automation software provider Basware reports its latest supply chain news, based on the findings of its recent survey The Cost of Control.
In the survey, almost two-thirds (64 per cent) of CFOs reported that they are currently focused primarily on cutting costs.
But this is leaving some exposed to supply chain risks as fewer than three in ten (28 per cent) associate procurement with exposure to financial risk to any significant degree.
Professor Adrian Done of the IESE Business School in Barcelona comments on the findings: "Businesses today are defined by their supply chains.
"And some of the high-profile business failures of the last 12 months point to this as a root cause."
In 2008, Basware recommended reducing paper usage and putting in place streamlined but flexible procedures for companies wishing to implement a greener supply chain.
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