Supply chain inefficiencies costing UK businesses more than £1.5bn

By James Henderson
Supply chain inefficiencies and miscommunication through “Chinese Whispers” are costing UK businesses over £1.5bn in lost productivity according to...

Supply chain inefficiencies and miscommunication through “Chinese Whispers” are costing UK businesses over £1.5bn in lost productivity according to analysis of industry data from digital freight forwarder Zencargo.

Resolving this could contribute to reducing the productivity gap that is harming British firms.

Detailed analysis of over 100 shipments from a cross section of UK industries suggests that UK businesses that trade internationally are wasting over three hours on average per individual shipment.

In particular, they found employees are spending time on phone calls and emails to request and funnel data back and forth between their trade partners, the majority of which already exists on partner systems.

Across the UK this results in over 100 million hours of time wasted per annum, or the equivalent of 50,000 employees’ annual working hours, tied up in procurement, managing suppliers and freight related admin.

The study also suggests that Brexit is likely to exacerbate this efficiency problem further as shipments with non-EU countries involve on average 17% more wasted time than shipments with the EU, owing to the increased communications burden around customs documentation.

SEE ALSO:

The study demonstrates the urgent need for supply chain innovation as a route to solving the productivity puzzle. The adoption of simple technology that helps automate communication can deliver productivity gains now to the tune of £1.5bn per annum.

This represents 5% of the UK Government’s annual target for productivity gains from digitisation (£30bn per year until 2030). Significant long-term transformation is possible through widespread digital adoption across the supply chain.

Alex Hersham, CEO and Co-Founder of Zencargo added: “Technology is the main building block to bridge the productivity gap in the UK. Lack of communication harms productivity in any business, factor in complicated and often outdated supply chains and problems very quickly escalate.

“Now is the time to invest and innovative in technology so we can truly compete on the global stage and at the same time benefit on a productivity level.”

Share

Featured Articles

Advancing the digital supply chain with strategic sourcing

As supply chain disruptions continue, strategic sourcing is one way companies can enhance sustainability, resilience and drive digital transformation

Microchip technology, from creation to supply chain shortage

As the chip shortage continues to put pressure on the manufacturing supply chain, we outline the transformative history of this 20th century invention

Improving supply chain management with IoT technology

As the supply chain faces challenges caused by ongoing geopolitical conflicts, trade wars and the COVID-19 pandemic aftermath, we explore how IoT can help

News round-up: supply chain, risk management, and logistics

Supply Chain Risk Management

Solving supply chain delays with network automation

Digital Supply Chain

Three ways to future-proof your supply chain

Supply Chain Risk Management