• David

How the F&B Supply Chain is being affected in 2022

There are always going to be your typical struggles for any start up business, whether you're in the food and beverage industry or any other sector; from cash flow to recruitment and more. This year however, there have been other challenges to face for F&B business owners; such as brewing costs soaring, post-brexit alcohol duty changes leading fewer smaller importers (which the industry needs), and oil price increases affecting cost of shipping.


With the war in Ukraine affecting supply chains globally due to export disruptions (according to the Financial Times), Sale Gurus UK have put together a few tips to help you navigate these uncertain times as B2B suppliers.


According to NBC News, fuel accounts for around 60% of global oil consumption, so as many countries remove Russia’s oil supply, it's going to cause oil prices to increase globally. This in turn will affect shipping costs, especially for those businesses who trade overseas; as well as potentially inreasing the cost of materials and production. As wholesalers you must either absorb the hit, or increase your pricing to make up for those losses. Absorbing the cost might keep your customers happy in the interim, but of course it will affect your bottom line in the long term.


So, now let's look at a few ways that B2B sellers can prepare to for the next few months of rising fuel costs.




1 - Try to reduce your shipping costs


Get strategic with your shipping practices! Weight and volume are key elements of food and beverage shipping costs. So, take a look at where you can save weight by trimming down your packaging, and therefore you should also be able to fit more of your product into one consignment - potentially saving a lot of money.




2 - Use more local trade partners


The benefits of local trade have always been a much talked about subject in the F&B sector, and it's a sensible move to make for food & beverage manufacturers and retailers today. Buying local reduces carbon emissions due to lower transport usage. It also reduces the amount of tax you'll be paying on food imports. But most importantly, you'll also be supporting local businesses and jobs.



3 - Communicate with your customers


It’s always a good idea to be as transparent as possible with your customers, right the way down the supply chain. You could add a statement to your website, send out a marketing email to your customer list or even reach out to your buyers individually and let them know that there could be some unavoidable issues in the near future. Just ensure to tell them you are doing your best to traverse these issues and that you'll keep them in the loop as circumstances and situations progress.


 

If you'd like more help to increase turnover in food and drinks brands sales, then get in touch today to find out more about how Sale Gurus UK can help to maximuse revenue for your business.


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