Boiling point reached as strategy quickly turns from benefit to risk


The UK’s sustained double-digit inflation is a clear sign that its strategy of reliance on local growers and imports has shifted from benefit to risk. The situation has now reached boiling point, with the lack of supplier diversification a key reason for empty shelves and rising food costs.

This is because many retailers have decreased in-store inventory, opting to rely on daily warehouse replenishment instead. As a result, even the slightest disruption is having an immediate impact on product availability and ergo on inflation. Unless sellers, makers and movers change the way they do business, this will become the norm.

Retailers should use intelligent supply chain technologies to forecast future supply levels and balance inventory levels in real time – enabling them to quickly adapt, expand and diversify their network of suppliers if an issue occurs in a specific region. This level of agility is essential to fulfil orders and prevent passing on the extra expense to cash-strapped consumers amid a cost-of-living crisis.