Global Supply Chains Face Further Turmoil in 2022
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New York and Montvale, N.J., March 2, 2022 – Supply chains were pushed to the limit in 2021 due to the ongoing pandemic, with extreme weather events, port delays, and political and economic uncertainty stress-testing their resilience.
With little signs of turbulence ending, accountants and procurement experts have created a “Charter for Collaboration” that commits to working closer together to better understand and address the complexities of global supply chains, and which focuses on the achievement of organizational purpose and value to society, one that is far broader than the traditional profit motive.
Views of various types of professionals are captured in a new report from ACCA (the Association of Chartered Certified Accountants), CIPS (The Chartered Institute of Procurement & Supply) and IMA® (Institute of Management Accountants) called Supply chains: a finance professional’s perspective.
The report highlights that due to ongoing disruption, major fault lines must be tackled, including that many organizations do not really understand their supply networks; that regulation is accelerating; and that financial and non-financial reporting demands are also increasing.
With business models shifting at a rapid pace, it means procurement and supply professionals and finance teams need to work much closer together in the planning process, the management of working capital, the development of ethical supply chains, or in managing the enterprise risks.
Helen Brand OBE, chief executive, ACCA said: “While there’s an intensified regulatory focus on supply chains, including their sustainability and the impact that they have on the world’s carbon emission targets, a strong ethical lens is also needed to address poor working conditions, modern slavery and other social issues. These are critical issues that accountants and supply chain professionals have the power to change together – especially in this decade of action to reach the UN Sustainable Development Goals by 2030.”
Malcolm Harrison, Group Chief Executive Officer, Chartered Institute of Procurement & Supply explained: “Using their professional expertise, and by working closely together, finance and supply chain teams can add real value for their organizations, their customers, their suppliers, and their investors.
“With greater challenges in, and more scrutiny of supply chains and an increased focus on ethics by investors and consumers, the complementary skills of procurement and finance professionals are needed to ensure that every organization has a supply chain they can rely on. A strong ethical stance should lie at the core of any profession. Procurement and finance professionals have an opportunity to create trustworthy businesses for the good of the planet and its citizens.”
Jeffrey Thomson, CMA, CSCA, CAE, President and CEO, IMA, added: “True collaboration between our two disciplines can benefit all – from improving capabilities, managing business and consumer disruption by reducing uncertainty in companies, and therefore, ultimately benefiting society. For accountants, this is about being a great finance business partner, providing relevant, accurate, and informed advice to support decision making. By doing this, it will strengthen the relationship between the supply chain and finance functions.”
To help finance teams and supply chain experts join forces, the “Charter for Collaboration” highlights ten areas of activity to deliver success – including a shared vision that supports the purpose of the business and its operations; joined up risk and due diligence management; and having a clear understanding of environment, social and governance (ESG) policies.
About ACCA: ACCA is the Association of Chartered Certified Accountants. We’re a thriving global community of 233,000 members and 536,000 future members based in 178 countries and regions that upholds the highest professional and ethical values.
We believe that accountancy is a cornerstone profession of society that supports both public and private sectors. That’s why we’re committed to the development of a strong global accountancy profession and the many benefits that this brings to society and individuals.
Since 1904 being a force for public good has been embedded in our purpose. And because we’re a not-for-profit organisation, we build a sustainable global profession by re-investing our surplus to deliver member value and develop the profession for the next generation.
Through our world leading ACCA Qualification, we offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance, and management. And using our respected research, we lead the profession by answering today’s questions and preparing us for tomorrow.
ACCA and CA ANZ have formed a strategic alliance for the benefit of members and to help shape the future of the profession. Find out more about us at accaglobal.com
About IMA® (Institute of Management Accountants): IMA® is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) and CSCA® (Certified in Strategy and Competitive Analysis) programs, continuing education, networking, and advocacy of the highest ethical business practices.
Twice named Professional Body of the Year by The Accountant/International Accounting Bulletin, IMA has a global network of about 140,000 members in 150 countries and 350 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/India. For more information about IMA, please visit www.imanet.org.
About The Chartered Institute of Procurement and Supply: The Chartered Institute of Procurement & Supply (CIPS) is the leading international body representing purchasing and supply management professionals and has over 70,000 members in 150 countries. It is the worldwide centre of excellence on purchasing and supply management issues. The activities of procurement and supply chain professionals have a major impact on the profitability and efficiency of all types of organisations. CIPS offers corporate solutions packages to improve business profitability. www.cips.org, @CIPSnews.