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Report warns public sector managers of supply chain risks

10 November 2010

The public sector could face major supply chain issues as spending reductions take effect across departments, according to a new report.

Specialist insurer Zurich Municipal has published a study exploring the prospect of increased claims for unfair dismissal, personal injury and other legal costs within the public sector as a result of cost-cutting measures.

Speaking to the Guardian, the company's head of local government Andrew Jepp said supply chain is another cause of concern, as all areas of the public sector must now effectively work "in partnership".

He told the newspaper: "That is a challenge for local government in particular, because you can't outsource accountability."

Mr Jepp said managers will need to ensure they have robust supply chains in the event of suppliers going out of business.

However, Roger Bickerstaff of law firm Bird & Bird told the Financial Times this week that public sector bodies are starting to take a "more proactive interest" in their supply chains.

He claimed that in the past, many organisations would simply ask for a list of the subcontractors involved.

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Categories: Local Government

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