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The majority of businesses operating in the UK are overlooking an area of their supply chain operation where significant cost savings can be made.

"Warehouse managers can tell you precisely how much they are paying for, for example, their forklift truck fleet, but often have no idea what it is costing them to wrap a pallet," says Martyn Sumner, managing director of Golden Valley Pallet Wrap Specialists Ltd (GVPS).

AEB (International) Ltd, provider of supply chain logistics software, has joined the United Kingdom Warehousing Association (UKWA), Britain's trade organisation representing the third party logistics (3PL) sector.

DHL Supply Chain has been awarded a three year contract to manage Hankook Tyres' UK warehousing operations. Under the new agreement DHL has assumed responsibility for the receipt, check and stock replenishment of inbound tyre deliveries, plus picking for next day distribution from the South Korean manufacturer's facilities in Daventry, Northamptonshire.

Manufacturers and retailers have developed highly efficient supply chain strategies to meet the needs of their day-to-day business. Some have outsourced to specialist logistics providers while others have retained operations in-house.

Companies are finding it increasingly difficult to control their supply chains at a time when the cost of failure is higher than ever, according to the risk management association Airmic. Firms are outsourcing not just production but also their reputation to suppliers without understanding how they operate or having adequate risk management strategies in place.

The United Kingdom Warehousing Association (UKWA) – the trade association representing the interests of some 700 UK-based third party logistics (3PL) specialists – is warning that Her Majesty's Revenue & Customs (HMRC) is imposing "draconian" sanctions on companies in the excise goods supply chain that will drive long established and honest firms out of business.

By Neil Willings, Global Head of Audit Delivery, Achilles.

'How much do we need to know about our supply chains?' and 'how much do we actually know?' are two questions companies across all sectors should be asking themselves in the wake of the brand-damaging events of the horsemeat scandal.

Key issues facing the SCM market were discussed at Gartner Supply Chain Executive Conference from 21-23 May in Phoenix. These issues will also be discussed from 12-13 August in Melbourne, and 23-24 September in London.

Despite the challenging economic environment, a survey of logistics, transport and supply chain operations professionals has revealed that investment in training and development has seen a welcome increase in the sector over the past 18 months.

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