The logistics industry functions on lean margins – therefore we have no issue with raising pay in the sector as long as the general public understand the cost of this. Prices for distribution – which frankly have been kept below their real value level for years – will go up. And that is inflationary throughout the supply chain. Therefore the sector may have better wages but this is how that translates to the general public: the prices of goods online and in the shops will increase – and that will impact on inflation, the ONLY lever the Bank of England has to control that is interest rates. Therefore, mortgage costs will go up too. Wages may be higher but throughout the rest of society the general public will feel poorer. Who wants that?
Frankly the government putting the burden of this challenge back in the laps of the industry wholly is passing the buck. The 50,000 backlog of DVLA test had NOTHING to do with leaders I logistics, neither did the shutting off of laybys so drivers had a place to rest, nor the woeful investment in roads infrastructure which makes the time pressures and resultant stress (due to congestion) on drivers key in why people wish to retire. Let’s accept MUTUAL culpability and work on a unified outcome that benefits all.
Let me be super clear – at Diamond we work with the very best supply partners who have been superb in their peak planning, shoring up their driver resources months in advance. There will be a successful Christmas with Diamond clients as long as you build time in for delays as volume and resources will be stretched. Start selling your goods early – and personally, don’t leave your own shopping until last minute etc. But you don’t have to thank Boris Johnson for this. You can thank the whole logistics industry – that, just like the care sector, has been working extremely hard for the last 2 years to ensure British consumers needs are met.
If any of our clients wish to discuss their Christmas planning please get in touch with your local serve centre leader who will give you the very best local advice.
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