JBA survey shows UK businesses see over-stocking as the biggest operational problem

A recent exit poll survey carried out by JBA at its Supply Chain Conferences held at the International Conference Centre in Birmingham UK, showed that companies operating in the automotive, apparel, food and drink industries felt that finished goods inventory was in need of the biggest improvement. All sectors felt that over-stocking was the biggest operational problem, however this seems particularly prevalent in the drinks sector (80%)

Over 100 UK companies were surveyed to assess the confidence of UK industry and looked at how companies plan to prepare for changes in the economy. As a result, the survey showed that 64% of participating automotive companies and 42% of food companies predict that in 12 months the UK economy would be weaker. 28% of the automotive sector felt that increasing manufacturing output would enable them to survive an impending recession, whilst 21% of the food industry thought that a combination of reducing administration overheads and finished stock inventory was the solution.

Simon Hallam, supply chain infrastructure manager at JBA, said: "Many companies seem to be preparing themselves for a looming UK recession. Companies understand that improving supply chain operations helps reduce operational costs and are starting to see k areas, which can be improved. Most believe that reducing finished goods inventory is the most important." For the majority of the respondees, the UK was seen as harbouring the strongest competition, apart from the automotive industry, where 50% thought that Europe posed the biggest threat.

Corresponding to this belief, 57% of the automotive industry thought t hat the Euro would be introduced to the UK in the next three years. Both the food (47%) and the apparel (31%) industries that thought that introduction of the Euro would take longer. Hallam remarks: "With predictions of the Euro only being introduced to the UK in the next three years, I believe that we may see a similar pattern of Year 2000 preparation. Last minute compliance may mean UK industry will be left behind the rest of Europe ."