UK retailers planning for more order volume over the next three years fear limited supply chain capabilities might hamper their growth.
According to new research by grocery logistics supplier Wincanton, eight in 10 British retailers expect order volume increase in coming years as the sector recovers from the pandemic, Brexit and other geopolitical turmoil.
However, nearly 90% of them said they feared they wouldn’t be able to scale their supply chain operations to cope with such rise in demand.
Labour supply was cited as a key challenge, with 68% of respondents claiming shortages of adequate talent had already negatively affected their ability to keep up with customer demand, particularly during peak periods.
Many retailers are also struggling to invest in robotics and automation innovation in their supply chains, with 61% saying that investment in this area “won’t be feasible in the next five years”.
Businesses agreed having access to a managed shared warehouse space, as well as a shared transport network, would improve their ability to cope with fluctuations in demand for customer fulfilment, the Wincanton research showed.
“It’s fantastic news to hear that UK retailers are planning for growth, even against a backdrop that presents a number of challenges,” said Wincanton MD of e-fulfilment, Carl Moore.
“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.”
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