Managing the “bounce-back” Demand

The UK economy is now predicted to grow at its fastest rate on record this year. So surely this is good news for us all right? Talking to most directors & Owner-Managers, the story is consistent – demand for products and services is outstripping supply.

The current demand within the UK upon the Transport & Logistics sector is unprecedented, with current forecasts suggesting a shortfall of qualified drivers approaching 80,000! The combination of the Covid-19 pandemic, Brexit and a sudden bounce-back, puts huge strains on an already limited supply-chain system.

Throw in the additional introduction of the delayed IR35 legislation and you have a perfect storm for the Logistics sector

So, in short, our fundamental advice to businesses, boards of directors & Owner-Managers alike includes:

• Consider your costs & pricing policies to cater for rising prices associated with these supply and demand issues – they are very real and growing!

• Start to think about managing your customer’s expectations & supply issues now including lead times, raising stock levels, improving communications etc.,

• Maintain strong relationships with key suppliers, particularly those within the Transport sector.

• Review just how resilient your supply-chain actually is and factor in contingencies.

• Look after key staff who are under pressure, who may not have had sufficient holidays (like most people) and who will undoubtedly be in demand elsewhere!

• Look after your customers & by reviewing the above points you stand a much better chance of doing so!

SJL Advisory can assist in answering many of these types of questions and more. Check out our website at www.sjladvisory.com