Balancing profit margins with the fast-changing demands of consumers in a global economy isn’t easy. The pandemic has resulted in increased consumer expectations of immediate fulfilment, while at the same time making it harder and more expensive for businesses to move products round the globe, with supply chains exposed as more fragile than expected. The cost of transportation both locally and globally has increased dramatically in the last two years due to labour costs as well as the price of fuel.

Issues that brands like IKEA, ScS and DFS are facing in the furniture space aren’t unique. We also need to think outside the box about the delivery of large items like washing machines. fridge freezers and technical machinery. The good news for the white goods and machinery sectors is that component parts can be delivered separately, and then assembled locally at the point of consumption. Money saved on fuel and higher labour costs will negate the extra local cost and ensure shipping containers are loaded to maximum capacity, making the process more efficient, cost-effective, and sustainable. Technology that tracks products and parts through each stage of the supply chain can help companies stay on top of their stock as these changes are made.

Despite the short-term difficulties, the sector is facing, brands can also use the opportunity that onshoring, near-shoring and supply chain re-engineering present to build brand equity and consumer trust to increase their ESG credentials. Looking for efficiencies in the supply chain will reduce carbon footprint, which is being demanded by consumers and shareholders alike.