THE RETAIL industry is not doing enough to “clean up its act” with suppliers, the UK’s supply chain body has warned alongside a new survey highlighting the damage that bullying tactics are having on the sector’s reputation. Figures from the Chartered Institute of Procurement & Supply (CIPS) out today revealed that 88 per cent of supply chain managers think supplier bullying is giving procurement a bad name. Nearly half (49 per cent) of respondents cited“pay to stay” charges as the worst bullying tactic being used to squeeze suppliers, while 35 per cent gave late payments or long payment terms as the worst example of malpractice. David Noble, CIPS group chief executive, said: “It’s time the industry sat up and took notice.” The report comes after Premier Foods came under fire in December for asking suppliers for payments to continue to do business with them.
Monday 9 March 2015 12:34 am
Retailers told to shape up