New data released by Unleased reveals that UK clothing and fashion businesses are holding 57% more stock than before the pandemic as a result of supply chain issues. This widespread stockpiling could lead to challenges in warehouse management, says Midland Bearings, an equipment supplier to the UK warehousing and logistics sector.
Through analysing more than 4,500 SMEs on four data points, the firm found evidence that make businesses had been forced to stockpile goods. The report highlighted that clothing manufacturers were reporting a drop in overall profitability, due to the impact of holding more stock.
It would appear that the supply chain crisis has evolved into an inventory crisis, where many businesses have to hold more stock than usual in order to remain operational. Managing the stock levels could present real cash flow problems for these manufacturers in the months to come.
Phil Chesworth, Managing Director at Midland Pallet Trucks says, “Everyone in our industry has worked so hard to mitigate the effects of supply chain issues caused by Brexit and the pandemic. The challenges prevented by the inventory crisis mean that warehouses will have to work even harder to ensure stock management is optimised to help increase profit margins”.
Midland Pallet Trucks provides warehouses with high-quality hand pallet trucks, weighing scale trucks, and manual stacker trucks. Their materials handling equipment helps warehouse employees to optimise their space and manage their inventory with ease. Improving the management of warehouses will be crucial if firms are to weather the inventory crisis.
Phil adds, “Our equipment has helped those in our industry stay afloat during the past few years, by providing them with the means to increase the efficiency of their warehouse operations, and improve the productivity of their staff. We will continue to support the logistics sector throughout these coming months, to help with the management of the inventory crisis”.
To find out more about the wide range of material handling and lift equipment available from Midland Pallet Trucks, visit: https://www.midlandpallettrucks.com/