New research from supply chain firm Wincanton shows that 83% of UK retailers are planning for order volume growth over the next three years. Following a period of difficulties for the sector caused by the pandemic, Brexit and other economic issues, this suggests improved confidence in UK retail and opportunities for firms.
However, Wincanton notes that there are several challenges that retailers will need to overcome as currently a higher proportion (89%) say that increased orders would negatively impact their ability to successfully fulfil customer orders.
This reflects the continued challenges the sector faces, including with labour supply. 68% of respondents to the survey said that a shortage of good quality labour has negatively affected their businesses’ ability to keep up with customer demand, with a similar number stating that labour concerns negatively impact their ability to scale up during peak demand.
Many retailers are also struggling to make the investment to modernise and implement robotics and automation innovation in their operations, with 61% of those surveyed saying that investment in this area won’t be feasible in the next five years.
However, the data shows a potential solution, with shared-user facilities providing a way to mitigate labour and investment issues. Wincanton notes that this would enable retailers to improve their supply chain flexibility and unlock their full growth potential, with 70% agreeing that outsourcing fulfilment and logistics functions would make them more agile.
71% of respondents agreed that having access to a managed shared warehouse space would improve their ability to cope with fluctuations in demand for customer fulfilment. A similar number (69%) agreed that having access to a managed shared transport network would improve their ability to cope with fluctuations in demand.
Carl Moore, Managing Director of e-fulfilment at Wincanton, commented: “It’s fantastic news to hear that UK retailers are planning for growth, even against a backdrop that presents a number of challenges. Embracing more collaborative approaches to supply chains, such as shared warehousing and transport solutions, will go a long way towards making retailers more agile and able to achieve the growth they’re targeting.”
NAM Implications:
- More collaborative approaches to supply chains, such as shared warehousing and transport solutions could be a solution.
- Worth consideration and discussion…
