Danny Hudson, director for UK & Europe of logistics & supply chain excellence firm FarEye, said:
“Liz Truss needs to focus on the promise in her victory speech to ‘deliver on the energy crisis’. According to the insolvency firm Red Flag, more than 75,000 larger firms, that are high energy users, are at risk of insolvency or are likely to lay off staff without urgent government support.
“The UK’s retail sector, its supply chain logistics industry and delivery fleets, are facing catastrophic consequences this winter. With doubling fuel and energy costs, wage inflation, and a labour shortage, it is being squeezed from every possible angle just as a recovery from Covid lockdowns was on the horizon. The viability of these businesses is driven by cost and service. Balancing these currently seems an impossible task. Brands can only absorb so many costs before costs to consumers go up, or they face the risk of going out of business. It is essential that an urgent relief package for business is made available as soon as possible. The sector needs immediate fuel duty tax breaks and help to get young people into work across the country”.
“Consumer expectations remain high. Supply chain delays and industrial action that impact last-mile delivery logistics affect customer experience and erodes hard-earned loyalties. Retailers need absolute transparency of where every penny goes so that they can get smarter about what’s working and how to become more cost-efficient. New and upcoming technologies, such as artificial intelligence and machine learning, should be used to improve competitive advantage and find efficiencies by analysing previous performance.
“There are hard decisions to be made as consumers seek better value for their shrinking disposable income.”