Protecting yourself from price rises
Disruption can appear in your supply chain from many different places and, as recent history has taught us, can often appear all at the same time.
The fragility of the European economy has continued to put pressure on retailers – with growth remaining small and inflation staying high. This has meant that natural resource costs are high, impacting margins and translating into higher product prices for customers.
And while high resource costs don’t show any signs of returning to pre-pandemic levels, recent global turmoil with war in Ukraine and Gaza has sent transport and freight costs spiralling for many businesses. European shipping operators Hapag-Lloyd and Maersk both suspended shipping through the Red Sea – increasing rates as alternative routes take longer. One British-based business saw their shipping rates increase 250% in early January 2024.
As part of Bunzl, our purchasing power brings security to you during times of economic upheaval.
- Our capacity to purchase in large quantities means that our purchase prices remain lower even when costs are rising.
- We can leverage global Bunzl Group purchasing agreement for the benefit of our customers.
- Our knowledgeable category managers are able to tender our customers’ requirements across our assured and accredited supply chain and build long-term partnership to ensure best value pricing.
- The account team and supply chain managers ensure that we have the right products, at the right quantities, at the right prices.
This means any increases are generally smaller, making them easier to absorb and less impactful on your margins or customer price increases. To enable cost avoidance in your procurement for those GNFR products you know you will use and won’t want to run out of, we are a lifeline.
Partner with confidence
In a recent podcast from McKinsey & Company, Knut Alicke and Radu Palamariu (co-authors of From Source to Sold: Stories of Leadership in Supply Chain), explain that the future success of your supply chain relies on your ability to model future scenarios. And the only way to do this is to have a holistic view of everyone, and everything, in it.
When we partner with you, we’re not simply offering better purchasing power and price protection. We work alongside you in a flexible way so that you can take control of your purchasing schedules and spend, allowing you to react and respond to changes as and when they happen.
Agility and security in your supply chain could look like:
- Finding alternative products and swaps that are cheaper or more sustainable
- Amending your payment terms or contract
- Only paying for your products when they leave our warehouse (we don’t charge in advance)
- Getting help planning and forecasting what you need, when you need it, and knowing it will be available without delays
- Building a great relationship with us so that we understand your systems, helping you to run a lean supply chain
- Grouping deliveries – delivering more, less often to reduce your transport costs
We’ve helped thousands of retailers bring stability into their supply chain so let us help you to do the same.
Work with a partner who will provide service with guts and help with stock management and cost avoidance in procurement. Speak to our team on +31 (0) 88 494 20 80 or email us at online@worldpack.eu
