Following the news that the Food Standards Agency has ordered companies to test their processed beef products and the suggestion that the inclusion of horsemeat in some food products may have happened through gross negligence or deliberate contamination, Hitesh Patel, Forensic Partner at KPMG commented:
“This situation offers a stark illustration of the risk of supply chain failure and should serve as a large wake up call for all organisations, not just those in the food sector. Regardless of whether horsemeat entered food products through criminal activity, fraud or mistaken contamination, this situation starkly illustrates the importance of robust counterparty due diligence for organisations in today’s market and poses some stark questions as to how far down the chain those procedures should go.
“A drive to cut costs through the supply chain can have unintended consequences. The unfolding situation offers a clear warning to organisations that they have a duty to assure their supply chain for their end consumers. At a time when trust – from customers, regulators and government - is an important issue across many sectors, relinquishing control over suppliers can have considerable ramifications.”
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or firstname.lastname@example.org
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.