Supply chains are to become more efficient in the months to come, as businesses fight rising costs of both fuel and raw materials, it has been suggested.
Speaking to the Financial Times Keith Harrison, head of global product supply at Procter and Gamble (P&G), said: "Today you have road congestion, you have freight costs, driver shortages, capacity issues.
"Working capital is at a premium. Competition among retailers and vendors is higher. All of this is putting pressure on execution, which manifests itself through the supply chain. This is more critical than it has been before."
His sharp words have shone a light on the importance of ensuring a supply chain is as lean as it can be, as well as demonstrating the need to choose suppliers carefully, not just because of loyalty or cost of the product, but also because of the cost of shipment of the product to the UK, given new and rising fuel costs.
Mr Harrison added that P&G is reshaping its supply chain to become more proactive, in order to create a sense that things can be changed to find the best means of delivery.
Outsourcing a supply chain is often the best way to implement such changes in a business.
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