What can UK manufacturers do to help reduce operational costs in 2024?

19th August 2024

It's difficult for manufacturers to plan and invest in the current unpredictable economic landscape.

UK manufacturers are facing a tough environment with rising costs

There's a plethora of strategies and UK manufacturers can become more efficient and reduce operational costs to remain competitive in this challenging economic climate. Digitalisation, automation, data-driven decision making, these are the manufacturing buzzwords and trends regarded as the saviour to UK manufacturing.

So what's holding UK manufacturing businesses back?

1. The perceived cost of investment
2. The risk of change
3. The time required for the transition to a more efficient way of managing

In an uncertain economic environment, manufacturing businesses are reluctant to invest significantly. The challenge is compared to global competitors, the UK manufacturing sector struggles with lower productivity, making it more challenging to compete on price. So what steps can they take?

Outside cost pressures influencing profit which can't be controlled

The cost of energy, raw materials and transportation has risen significantly, squeezing the profit margins of UK manufacturers. The pandemic and geopolitical issues continue to disrupt supply chains into the UK, leading to delays and shortages of materials, further impacting external production costs. The UK's exit from the European Union (EU) and the effects of COVID-19 have exacerbated the existing shortage of skilled workers in manufacturing, making it harder to find qualified employees.

The focus must be on what can be controlled

Reviewing operational logistics, streamlining inventory levels, optimising delivery routes and renegotiating supplier contracts can lead to cost reductions with little-to-zero upfront investment. With consumers increasingly demanding eco-friendly products, there's a growing global push for sustainability. Logistics is an obvious starting point to adopt sustainable practices and help UK manufacturers gain a competitive edge by:

• Reducing their carbon footprint and complying with environmental regulations
• Lowering energy costs through energy-efficient practices
• Appealing to a growing market segment that values sustainability

What if you could have expert help to identify savings at zero cost?

Our team of world class logistics specialists are available to conduct a free 360 audit with immediate feedback on potential cost savings. We’ll take responsibility for delivering the solution and achieving the agreed cost saving, or we pay! We provide solutions with options, a fixed transparent pricing structure and we give you a performance guarantee. We've proved ourselves in the most challenging manufacturing environments and we can help you identify and actively drive out cost from your supply chain operations.

Here’s how the 360 onsite logistics audit and assessment works!

Put us to the test, what have you got to lose?

Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.

_{There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.}