With the UK Budget imminent, logistics and supply chain leaders face renewed uncertainty over costs, labour, and investment priorities. While no one can predict the detail, several credible outcomes are already shaping planning discussions across the sector. Increases in fuel duty or business rates would put further pressure margins. Increases to National Insurance, wage thresholds or employment costs would affect overall workforce affordability and availability. For labour-intensive logistics operations, even marginal changes can materially shift cost structures and service viability.
As has always been the case however, the challenge for logistics management is to focus upon adapting to potentially new challenges and where possible take advantage of new opportunities. Business leaders do not have the luxury of evaluating future national economic impact - The challenge is how to manage your organisation in a changed economic environment.
This means understanding exposure and building cost-sensitivity models to understand the new challenges and evaluate new product opportunities and new ways of working. Can AI and increased automation be used to offset in increased labour costs? Can changes to the organisation of the supply chain be used to reduced infrastructure costs? What are the plans for increased supply chain capacity if market share grows? Being prepared and conducting at least a basic level of modelling of some of the more likely changes could well provide a genuine competitive advantage. Those who act early are more likely to secure scarce skilled planners and technicians, particularly interim project resource, and suitable property or warehousing ahead of the post-Budget reaction window.
Reviewing efficiency and automation opportunities now and modelling their impact against broad scenarios will also help identify where short-term gains can offset higher running costs without heavy capital outlay.
At Davies & Robson we have significant experience of developing supply chain leadership teams and providing specialist project support to deliver change.
If you would like to discuss your potential needs for executive or project supply chain leadership, please contact us on 01327 220862 or at johncashmore@daviesrobson.co.uk