Price crucial in supply chain decisions

21/08/2012

Tough economic times have led to almost two thirds of manufacturers saying that the costs associated with transporting goods are influenced manufacturers’ decisions when choosing suppliers and where they supply to.

The research was conducted by Barclays Bank and revealed that 65% of those surveyed were influenced by cost during their supply chain decision making. In addition, a further 11% said that their decisions were heavily impacted by costs involved with transportation of goods.

Of those surveyed, almost two thirds source commodities (41%) or components (20%) for their products from the UK rather than abroad (39%). Over half of respondents (53%) produce goods that are sold to the UK end user or are used as components in UK production.

For those that do source inputs offshore, 32% now look to China as a key market, followed by 19% who source from Germany.

Barclays Corporate Banking head of manufacturing, Mark Lee, said,

“Self confidence and traditional values of quality appear to be key drivers behind UK manufacturers’ supply chain strategies. For UK manufacturers that are able to fully grasp the opportunities and risks related to global trade, there is undoubtedly a competitive advantage.”

Mark Lee, head of manufacturing, Barclays Corporate Banking said: “Self confidence and traditional values of quality appear to be key drivers behind UK manufacturers’ supply chain strategies. For UK manufacturers that are able to fully grasp the opportunities and risks related to global trade, there is undoubtedly a competitive advantage.”

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