Inflation in the UK economy has now reached a level not seen for 40 years, and the consequences are affecting both individuals and businesses alike. Many individuals are being forced to make real lifestyle choices to mitigate the cost of these rises, and businesses are having to do the same.
It’s been well documented that both Aldi and Lidl are taking significant market share from the traditional leading UK supermarkets, and this is being achieved by predominantly controlling the cost base which in turn is keeping their product prices low in relation to the competition.
For executives responsible for logistics, it’s important to now revisit the cost drivers of their distribution operations and ask fundamentally whether the time is right to review the service offering and challenge whether this offering is appropriate in the current economic climate. This could cover a multitude of areas including:
- Delivery lead times & frequency
- Provision of, and charging for, value-added services
- Minimum order quantities
- Minimum order values
- Range of product offering
- Number of SKUs held in stock
- Average stockholding cover
Davies & Robson appreciate that making service and cost trade-offs can often involve delicate business discussions. Having a well-respected, independent third-party invested in the process can often help to meet these objectives swiftly, and the ability to undertake change at pace is important in these challenging times.
If your business needs support to identify opportunities of cost reduction by re-aligning the service offering against the backdrop of the current economic climate, then give Davies & Robson a call on 01327 349090
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