The survey by supplier management software company, Trade Interchange, found that 60% of respondents use a basic spreadsheet or paper-based system for recording their supplier information.
Trade Interchange warns this exposes their business to reputational dangers relating to risks surrounding the Modern Slavery Act, allergen legislation, health and safety practices and antibiotics in livestock.
The research also highlighted that only 23% of those questioned recognised the importance of holding supplier information relating to the Modern Slavery Act 2016, despite it being in force since April this year.
Mike Edmunds, co-founder and managing director at Trade Interchange, said: “The findings in this report highlight that the reputational risks which come from the ineffective management of suppliers are still underestimated by many.
“Whilst it’s clear that operators recognise the potential threat inefficiencies in the supply chain can cause to their business’ reputation, there is growing concern that this could be undermined by a lack of attention when it comes to managing this information.
"With new laws, legislation and non-compliances regularly emerging and developing, it is vital that businesses in the Foodservice and Hospitality Industries have procedures and software in place to continually monitor and identify risks in their supply chain.”
A full copy of the research report can be downloaded at: http://www.tradeinterchange.com/FSresearch.aspx