Supply Chains are suffering from the impact of rising inflation, longer lead times and supply shortages. Globally there is a shortage of shipping containers and port congestion. Overseas factories output has been reduced by Covid. Within the UK, labour shortages are leading to longer lead times and higher wages. Fuel costs are reaching record highs. These problems are forecast to continue through 2022.
It is now time for companies to re-assess their supply chains and in particular their vulnerability to disruption and cost inflation. The Just in Time model is broken.
It is now time to address the factors affecting Supply Chain effectiveness.
- Can product be sourced locally?
- What level of safety stocks should be held and where should these be located? Will more warehousing be required?
- Can productivity be increased through larger minimum order sizes? This can translate into both increased warehouse and distribution productivity.
- Can increased automation boost productivity? Take advantage of the 130% super-deduction tax incentive and invest now.
- Is the infrastructure right for the future? Is there a requirement to have facilities closer to markets to reduce both costs and Climate change impacts?
Davies & Robson are uniquely placed to help companies improve their Supply Chains with solutions that work. Its directors and consultants all come from a practical supply chain background.
Find out more about our supply chain consulting service or please call us on 01327 349090
