Time to review your key supply-chain?

As we all start to think more about emerging fully from lockdown, what type of decisions are business facing?

Looking at the Transport & Logistics sector, there has been a reliance & growth on B2C and e-commerce, and it is a trend that is likely to continue well into the future!

Brexit has caused huge disruption, delays and added administration with border crossings to/from Europe & Ireland for the UK. So how will this effect your business or impact on you personally?

There are going to be some significant cost pressures coming down the line and will inevitably lead to price increases.

For example, the combination of the Covid-19 pandemic together with Brexit has already impacted upon distribution costs. Pre pandemic a typical price for a 40’ container leaving Shanghai heading for Europe’s largest part, Rotterdam, was in the region of $1,500. Now it can be in excess of $8,000 !! Vessel availability is limited with many ships being reserved well into the foreseeable future & tens of thousands of containers being positioned in the wrong place.

Hence whether you are an exporter, an importer or source/supply purely the UK market, NOW is the time to review your key Supply-Chain.

Consider where are your key suppliers based? Where are your products manufactured? Can you source locally? What has the pandemic taught you about your distribution channels, your “route to market”? Are your recovery plans robust enough, or reflect ESG matters sufficiently?

Finance – those loans, CBIL or other contingencies will all need to start being repaid. Time to consider a refinancing package perhaps?

What will the future working practices be – working from home, returning to the office, or a new hybrid arrangement?

Opportunity does clearly exist and with further pent-up demand coming on stream as lockdown eases, now is a good time to review those Business Plans, your Supply Chains and contingencies.

See how SJL Advisory can help with those reviews by looking at our website or send us an email or pick up the phone.