S1: Collaborating to combat rising rates for logistics

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The drivers/demands/behaviours changing this area of retail

Sea freight rates have increased and recent supply chain issues are well documented. UK road freight prices are up 15% on the start of 2021 and the highest of the previous three Januarys, according to the latest TEG Road Transport Price Index. In May, cabotage rules are changing and, in the longer term, vans and HGVs are required to switch to alternative fuels.

The current state

Retailers have been hit with increased costs and supply chain delays with the subsequent knock-on effect on operational costs and customers.

Implications

  • Higher prices for consumers
  • Reductions in costs through back hauling
  • Using existing infrastructure to share transportation
  • Repackaging to get more product onto pallets or into trucks to reduce journeys
  • Switching to alternative fuels

Discussion points in the podcast

Where and how do you start working with suppliers to reduce carbon emissions?

What information are customers interested in?

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