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Cure for retail headaches is close at hand, says Dachser

[ October 28, 2020   //   ]

German-owned logistics provider Dachser says that its well-established North African services and new network extensions in Turkey and Eastern Europe will help UK retailers cope with the uncertainties of Brexit and Covid.

It says that while the Chinese manufacturing phenomenon has radically reduced UK retail prices over the last two decades, the cost of sourcing there has long been on the rise, with other Asian economies benefitting from their lower labour costs. The Covid crisis may well be encouraging trends for near-sourcing as longer supply chains are seen as more susceptible to disruption.

Added to this trend is the current boom in omnichannel sales channels. The Office of National Statistics (ONS) figures show that in April this year, 30% of retail sales in the UK were online compared with 18% in the same month last year. Much of this online market is made up of fashion items and clothing that are changing in nature as lifestyle changes are forced on a ‘lockdown’ population.

Shorter lead times on textile products are being demanded by retailers of their manufacturers, so transit times of 4-5 days, by road and ferry from Tunisia and Morocco are preferable to 20-30 days by sea from the Indian sub-Continent, China and other Asia origins. Airfreight with transits comparable to North Africa at 5 to 6 days door-to-door, is far more expensive and currently lacking in capacity.

Dachser says that its groupage and part-load services can move freight in smaller quantities regularly from the region and retailers need not commit to the high volumes required when shipping full container loads from Asian origins.

Reliability of delivery is also crucial to the UK retailer. Merchandise delivered when expected and indeed arriving intact, are standard requirements for the fashion retailer to stay competitive. Again t

The shorter, overland supply chain also helps ensure that shipments arrive intact, says Dachser.

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