Delays prove costly

27 January 2000
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27 January 2000 | David Arminas

Three-quarters of European companies experience delays in receiving imported goods, either finished or component, while 79 per cent experience delays in exporting goods, according to a recent logistics survey, writes David Arminas.

The Global Pathways survey, commissioned by consultancy Vastera, also revealed that around three-quarters of companies importing and exporting goods do not hold up-to-date records on the cost of delays.

Of the respondents that knew the cost of their import delays, the average annual loss was nearly £250,000. For those with export delay figures, the loss was around £2.8 million.

The survey suggested that increasingly sophisticated supply chain management is partly to blame.

Integrated logistics requires communication with a large number of different information systems and this can present obstacles, such as payment delays, out-of-date country information and incomplete or incorrect invoicing data.

The survey questioned logistics, purchasing and import-export managers in the manufacturing, distribution and services sectors. The 210 respondents were from the UK, Germany, France, Ireland and the Netherlands, and their companies had turnovers of between £10 million and £1 billion.

SMjan2000

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