HEALTH CHECK We took the opportunity to ask Trucking Britain
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responaents about the robustness of their own supply chain: are you concerned about the financial health of suppliers to your business?
More than half (55%) said no. but more than a third (34%) said yes. Analysis of the results shows that logistics and contract distribution firms were most likely to be concerned, with 50% answering yes.
We then asked respondents what those concerns are and how they are being addressed.
The common theme that emerged was more regular credit checking, although one operator noted the "lack of up-to-date information in published accounts" and that "credit agencies are not always reliable".
Another operator answered. The risk of IT suppliers failing. We are investigating escrow to mitigate this."
"Adding a 'plan B' to all essential streams," was another answer.
A similar, more detailed response was: "We need to have partnerships with suppliers to enable our business to operate effectively. We regularly review our supplier base, check financial standings and have alternative suppliers should they be needed rather than having all our eggs in one basket."
A frequently mentioned concern was the lack of available subcontractors and drivers with no clear solutions available.