There have been so very many surreal moments coming out of 2022’s news bulletins and one of the most jarring had to have been last month’s butter coverage! June saw the price of Lurpak soar to around £9 per kg leading some supermarkets to add security tags to the popular breakfast spread. Lurpak’s parent company Arla explained that the price hikes were as a result of rapidly rising global inflation rates and the knock on effect of this throughout the supply chain. Farmers, dairies, transporters and end retailers are all feeling their margins increasingly pinched and when it comes to prices to the end consumer, it seems the only way is up.
The issues with Lurpak are absolutely not stand-alone. In fact, inflationary increases affect all parts of our supply chains and when added to the Brexit and Covid hangovers global production and trade are currently battling, the picture looks increasingly uncertain for businesses across the UK. So, what can we do to cushion our retail businesses from the impact of global supply chain issues?
The importance of having effective stock taking protocols in place has never been higher, here’s how it can help your business weather this year:
Get to Grips with Trends
Whilst the cost of living crisis brings a significant amount of unpredictability to the retail sector, we can really help ourselves by understanding the trends relevant to our particular businesses.
Are certain items more in demand? Less so? Are your usual products easy to procure still? Or at the mercy of global supply chain issues? Are customers buying online more? In bulk? Not at all?
Using a professional stock taking service will help you get to grips with patterns and potential trends in your sector to plan ahead and make the best decisions you can to get through the next 12 months.
Dealing with Stock Loss
There are many things that can contribute to stock loss in the retail sector – human error, accidental damage, theft, criminal activity or items becoming simply unsellable after a certain period of time. In store theft is undoubtedly down, increased pressure on staff – both professionally and financially can have an impact on your stock levels.
Understanding where your stock has gone can help you mitigate against losses
The ongoing uncertainty in the British retail sector is quite unsettling for businesses and situations like the soaring cost of ‘essentials’ like Lurpak can shoot fear into the hearts of the most robust business owners. Now’s the time to get your basics spot on – like stocktaking. Whether you need a few pointers, some staff training or support with your entire stock take, Abacus can help. Give the team a call today to discuss your business.
