The main story concerning us all is price rises in the UK.
Small businesses across the country have been affected by increasing prices across the board, with food price inflation rising at the fastest rate since 2008. This has been caused by a variety of factors, including rising oil prices, the war in Ukraine, and bottlenecks in global supply chains.
This has led to many food and beverage businesses experiencing reduced profits and increasing their prices as a result. Even large companies are feeling the pressure, with Greggs coming under fire for raising the price of sausage rolls by 5p.
Read on to hear about some of the other supply chain news stories that might be of interest to your business!
- UK Government caps energy costs. Companies across the UK expressed concern with rising energy bills; however the government announced a six-month scheme to help businesses fix their energy prices. While this isn’t a permanent fix, it offers temporary relief across supply chains and to small businesses.
- The Post Office joins forces with DHL Express. This partnership makes it easier for both businesses and domestic households to pick up parcels, meaning the smallest food and beverage businesses can take advantage of ordering products from their supply networks.
- Shortage of soya milk hits UK customers. Production problems in September meant that soy milk was missing across supermarket shelves. Danone, the company that owns Alpro, apologised for the delay and assured customers that supplies would be back to normal in a matter of weeks. On the subject of plant-based products, a survey recently announced that one out of three customers don’t know where their oat milk comes from. Clear labelling across supply chains is more important than ever!
- Businesses urged to make their supply chains more sustainable. While many companies want their supply chains to be more environmentally sound, not much is being done. One out of three businesses lack a business case for sustainable supply chains. Even small businesses can make a big difference when it comes to sustainability, for example, by using recycled packaging and working with local suppliers.
In conclusion: what to do when supply chain prices are rising
Dealing with rising supply chain costs is hard, especially when you’re a small business. Renegotiating terms with suppliers is often the best way to reduce the impact of price changes, especially if you’ve been working together for a long time. Alternatively, you may decide to find a more cost-effective supplier or review your internal processes to see where you can save money.
You may choose to increase the price of your product, but it’s important to understand the market you operate in, as well as your target audience. Will the increase in profit be offset by customers no longer buying your product?
And of course, remember that a supply chain management system like Opply can help you review your suppliers, find new companies to work with, and save money automating admin tasks.