A cross-industry and government taskforce should be formed to assess the resilience of supply chains used by the UK manufacturing sector and establish an action plan for any future disruptive event, Make UK has urged.
The call came following the economic shocks of the pandemic and Brexit and the knock-on effects to supply chains from increased energy, transport and raw material costs, as well as transport availability. The war in Ukraine is adding to these impacts; the conflict contributed to decelerating rates of expansion in manufacturing output and new orders in May.
Survey findings from Make UK and Infor found that in response to the current challenges, almost two fifths of manufacturers have increased the number of suppliers in the last two years while a similar proportion expect to increase their UK supply base.
“For decades manufacturers have used increased globalisation and supply chains to drive efficiency and create lean manufacturing processes which have helped them grow and remain competitive,” said Make UK’s director of policy Verity Davidge. These models are now being turned “upside down”, she said, which for many companies will mean “leaving ‘just in time’ behind and embracing ‘just in case’.”
While three quarters of survey respondents described their supply chain strategy as intermediate or advanced, most say they have limited or basic digital supply chain solutions in place. Over two fifths of companies are planning to increase their investment in digital supply chain technologies by more than 10% in the next two years. A further recommendation is for the government to include supply chain software management in the ‘Help to Grow: Digital’ scheme.