Commenting on the latest developments in the horse meat scandal, Andrew Underwood, head of supply chain at KPMG, says:
“From farm to fork there has been a lack of consistency in the way produce has been monitored, meaning that it has been too easy to take advantage of gaps in the food supply chain. It cannot be accidental that we are seeing serious problems emerging when the backdrop is the continuing poor economic climate.
“Many companies use supply chains that revolve around a web of international partners, but these vast networks can bring additional risk. One study has shown that from conception to consumption there are more than 450 critical control points. It means that there are opportunities at almost every step of the way, such as at the abattoir, the processing plant, and at the point of packaging, where checking needs to be done, not just at the end of the production line.
“The important thing is that food suppliers and retailers need to build stronger relationships with the companies that they work with, build in measures that allow for checks, share reward more evenly, and impose punitive measures for failure. In other words, they need to proactively manage the supplier relationship.
“In recent years random drug testing in sport has driven down the incidence of illegal substances used to enhance performance. If the links in the food supply chain are more visible and transparent, there is no reason why the same approach at any point in the production process can’t produce equally effective results and rebuild consumers’ trust.”
Ends
Media enquiries:
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk
Notes to Editors:
About KPMG
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.
