Is Good Faith Receiving the key to reducing supply chain disruption in the UK?

The last few years have been filled with issues and disruption when it comes to retail supply chains in the UK. While there are several contributing factors to this situation, one of the key consequences has been increased costs for 3PL’s which are invariably passed onto the retailer and through to the consumer.

But are retailers and producers in the UK missing key opportunities to reduce disruption and associated costs, while also tackling the challenges in retail supply chain management? Read on to find out!

Major supply chain disruption is not normally caused by a single factor, but rather a perfect storm of several issues striking at once.

The last three years has been exactly that, with the pandemic, Brexit, fuel shortages, wage inflation and more combining.

The world can’t stop talking about it, but that’s because the pandemic is still having lasting effects on the global economy today. It is thought that an estimated 1.4 – 1.5 million EU nationals left the UK workforce as a direct result of the Covid pandemic.

Plus, during periods of lockdown, training courses in the logistics industry were suspended, and many people left their jobs voluntarily. It is reported that the DVLA reduced new lorry driver tests by 30,000, and 45% of managers said that they experienced an increase in staff resignations during 2021.

New legislation brought about by Brexit also makes it harder for UK firms to recruit from the EU, and many EU nationals have reported feeling unwelcome in the UK since the referendum.

These two factors, combined with a 60,000-person shortage in haulage prior to the pandemic, has left the UK with 500,000 staff shortages across the UK supply chain.

This has led to increased costs not only domestically, but also worldwide, with global shipping costs reaching record highs in September 2021.

With soaring costs and delays, the need to streamline processes and reduce on costs is more important than ever in the logistics industry. That’s why adopting an innovative process designed to do exactly that, like Good Faith Receiving (GFR), can help.

GFR is the process of accepting a shipment or delivery in good faith, essentially trusting your supplier to deliver exactly what you are expecting. This helps reduce claims, reduce staffing costs, and increase efficiency at warehouses and delivery points.

This approach is beneficial for both suppliers and customers.

Those in receipt of deliveries can save hours in wasted time checking through the entirety of a shipment, and delivery drivers can simply unload the stock and be on their way in a matter of minutes.

Perhaps most importantly, GFR can hugely reduce the number of claims for 3PL’s and suppliers. This means that customers needn’t go through the long administrative process of logging formal claims and providers don’t need to spend hours checking through their own records and deliveries to respond to them. Read our most recent blog on Good Faith Receiving to find out more about the topic!

Orridge are a leading provider of logistics solutions and stocktaking software in retail markets, providing our clients with the most up-to-date, efficient, and accurate processes.

We have a large, dedicated team of specialist auditors who will be able to help implement GFR at your delivery site, conducting sample accuracy audits and revolutionising your approach.

Our team carry out more than 15,600 delivery checks every year, with more than 1,200 employees internationally and operational coverage across 17 different European countries.

GFR can help not only maximise efficiency but also improve supplier relationships and provide updated, accurate data regarding your stock.

Whether you are thinking of setting up GFR or simply want to discuss your logistical options with qualified specialists, Orridge are here to help.

Our experts are on hand to answer any questions and even point you in the direction of resources that could help! Speak to a member of our team at contact@
orridge.co.uk or call the office on 01279 775600 today.