A recent survey of supply chain and procurement employers reveals companies are tightening their belts on all fronts. According to the
A recent survey of supply chain and procurement employers reveals companies are tightening their belts on all fronts.
According to the Hudson survey, the rising cost of fuel has forced companies to review not only transport methods, but travel expenses, travel planning strategies and staff numbers.
Alternative business strategies such as joint-venture warehousing and distribution deals are also being canvassed to save on overheads.
One third of employers say their business is reviewing its travel planning strategy, a fourth say they are looking to reduce business travel and 18 percent are investigating alternate transport methods.
The research suggests “alternative distribution and transport methods” such as “minimising shipping distances, consolidating shipments and optimising routing” are being investigated by a number of businesses.
According to Hudson Supply Chain and Procurement the fact employers are reviewing their operations carefully is positive.
A spokesperson for the group says the worst thing employers can do is “bury their heads in the sand”.
“Smart businesses are implementing a structure that is cost effective and ensures they get the most out of their transport budget,” the spokesperson says.
“Given the level of uncertainty in global economies at present, it is expected that the cost pressures impacting the supply chain process will continue for some time.
“As a result employers will continue to review all costs across their business and keep a close eye on expenditure.”