According to a survey by Evolution Time Critical, rising production volumes and low inventory levels are leading many manufacturing companies to spending money on emergency
logistics outsourcing, reports Logistics manager magazine.
A number of challenges have been presented to supply chain managers this year, including recession and natural disasters, but a number of them were pleased to announce an increase in production.
And as manufacturing levels recover with businesses are increasingly turning to emergency logistics to provide their supply chains with the flexibility required.
Some 22 per cent of supply chain managers questioned said that scheduling issues had made them turn to emergency logistics providers.
Another 18 per cent stated that not being able to deliver on time was the reason, while 16 per cent stated unexpected spikes in demand.
Evolution Time Critical’s managing director Brad Brennan said: “The recent natural disasters have encouraged manufacturers and Tier One suppliers to look deeper into their supply chains and companies who were once invisible to OEMs will now be on the radar.”
The Confederation of British Industry (CBI) reported recently that production is due to increase over before the end of the year, meaning more companies may need to call on emergency logistics.
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