It’s well documented that the UK economy is going through a turbulent time at present, and the new Prime Minister has taken on somewhat of a poisoned chalice, with most political commentators expecting her to have a baptism of fire over the coming months. The inflationary pressures on energy bills, caused by Russia’s invasion of Ukraine is top of the list of concerns for both businesses and individuals alike, with many businesses predicted to either close down completely or reduce headcount without a dramatic reversal in these costs. As a result, many are resulting to a “batten down the hatches” short-termism approach, with severe restrictions being placed on discretionary spend. In tandem, operational costs and client margins are being scrutinised like never before to minimise the pain of these energy price implications.
In the logistics sector, an assessment of operational practices, service levels and supplier terms can often identify valuable potential savings. Included in this could be reviewing:
- Fleet utilisation (volume delivered & hours utilised)
- Supply Chain Risks
- Empty mileage
- Fleet mix and buying policy
- Own fleet vs 3PL vs sub-contractor vs parcel/pallet network split
- Load planning rationale & logic
- Employed vs agency worker numbers
- MHE usage and agreements
- Storage opportunities with third parties
- Stock holding policies, particularly regarding slow moving and obsolete stock
Davies & Robson have got extensive experience with manufacturers, distributors, retailers, and third-party logistics providers in undertaking operational health-checks for businesses. For an informal discussion to see how we can help try and mitigate some of the immediate inflationary pressures by reviewing your operational costs in the form of a healthcheck, call Davies & Robson on 01327 349090
Clients Include:
