Firms have found 'better' suppliers following coronavirus

Will Green is news editor of Supply Management
25 August 2020

Two-fifths (41%) of firms have found “new, better” suppliers to work with as a result of coronavirus, according to a survey.

The survey, conducted by logistics firm One World Express, also revealed more than half (57%) of UK companies found the outbreak an “incentive” to make positive changes to their business model.

The survey, of 502 senior decision-makers at UK firms, found over a third (35%) now used cheaper suppliers than those they had worked with previously.

Atul Bhakta, CEO of One World Express, said: “The coronavirus pandemic has been both damaging and challenging for the UK’s private sector, but that is not to say it has not also presented opportunities too.

“[This] research highlights how Covid-19 has forced businesses to re-evaluate their business models and supply chains, in turn enabling them to make improvements to the way they operate.”

More than a third (36%) of survey respondents said businesses in their supply chain had closed down since March and over half (56%) had had to change how they delivered their product or service.

Just over half (52%) expected their turnover to grow in the second half of 2020.

Bhakta said: “Most importantly, there is a palpable sense of optimism coming from business leaders – the majority are confident that their company will experience a positive second half of the year, which comes in stark contrast to the doom and gloom of just three months ago.

“What matters now is that businesses do not become complacent but continue to seek new opportunities amidst the challenges of the pandemic; they must strive to pivot, adapt and grow.”

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