Managing the risks of the Haulage Crisis
Storage and distribution of raw materials is arguably the backbone of business – from manufacturing, to hospitality, to retail.
A fuel frenzy has been taking place over the last couple of weeks, sparked by headlines of forecourts running dry and shelves lying empty. Supply chain problems have impacted every area of the UK economy – and while these are the most publicly visible consequences, they are just symptoms of a much bigger problem.
Caused in part by Brexit and in part by Covid-19, there are critical shortages impacting the movement of both goods and people. Here are just some of the areas impacted:
- Availability of goods
- Disruption to lead times
- Required buffer stock levels
- Availability and shortage of staff
- Shortage of lorry drivers, forklift drivers and specialist vehicle operators
All businesses, including your suppliers, customers, partners and competitors will be suffering from the same issues. It’s therefore vital to prepare risk mitigation, and maintain close communication to lessen the impact on you and your customer base.
So, how can you achieve this?
As a business, analyse where these endemic problems may affect your operations. Check stock levels to ensure you don’t run dry now or during the festive season, and review your storage practices if dealing with unfamiliar stock levels. Remain vigilant about fire risks.
And let’s not forget, Covid is still around too – the continuation of a robust Covid policy is particularly important in the current climate, as any outbreaks or even individual infections could seriously impact your ability to operate.
To plug the gaps in the supply chain, you may need to take on agency staff – ensure they are properly trained in working in your business’ environment, and it may be wise to re-train existing staff to better cope with the extraordinary situation.
We’re Professionals in Risk Management
Lansdowne Woodward are your local risk-mitigation specialists, with decades of experience providing concise and effective advice. If you have any worries regarding your business in the haulage crisis, give us a call on 01202 874989 to speak to a professional advisor.