Our Experts View: Couriers & Logistics
The high price and lower availability trends in international logistics are also being reflected in the UK courier & logistics market. Whilst some factors are universal, including the impact of higher fuel prices, many are unique to the UK. These include the current driver shortage, the recent P&O ferry cancellations as well as the changing regulations post-Brexit and the subsequent border delays.
As most retailers, regardless of channel, view courier & logistics as a key cost in the delivery of their goods to store or direct to their customers, what can you do to minimise the impact of these challenges on your supply chain ?
- Drive less – we don’t mean this flippantly, if you can reduce the distance goods travel, you can reduce the cost of that travel. Look to alternate local suppliers and assess the costs of the entire product chain. Review whether your routes are optimised and efficient. This can also have the further benefit of reducing the carbon footprint of goods provided.
- Regularly review and re-tender your suppliers, annually if this is possible. Ensure that any contracts negotiated include mechanisms to ensure fair pricing.
- Ensure that you have good supply chain visibility and can identify opportunities for supply chain optimization.
- Compare your costs to baseline data to identify cost reduction opportunities across the product lifecycle.
These suggestions can inform a part of your approach to local freight and distribution, we are happy to discuss how they can be implemented and demonstrate our knowledge in this area.
Here at EbitIP we are experts in the field of indirect procurement, delivering real solutions – not just reports! Providing benchmarked and proven value across multiple categories for many clients we have a track record of innovation and excellence. You can review our case studies around freight and logistics here.
If you would like to find out more about how our procurement services could benefit your budget, contact us to arrange an introductory call.