Tag Archives: UK business

Four Ways Brexit Has Rattled CPOs

With Brexit headlines continuing to dominate the daily news, what have been the biggest lessons for procurement leaders on how to approach geopolitical risk?

By Pixel-Shot/ Shutterstock

As cross-party Brexit talks collapsed, stockpiling reached its highest level since records began in the 1950s. A final decision on Brexit looks like it has, yet again, been thrust into the distance. But by now chief procurement officers (CPOs), those charged with ensuring businesses have enough raw materials and goods, have learnt to live beyond politicians’ promises. 

Procurement teams have begun to view geopolitical risk as an unwanted yet permanent factor. It’s no longer just the prospect of Brexit that has procurement officers grappling with greater risk in their jobs. Any emerging geopolitical risk poses potential obstacles for global supply chains, which over the past few decades have become tightly interwoven. 

Lesson 1: Uncertainty is certain 

Procurement chiefs have learnt quickly that they cannot count on politicians. But they can control the steady flow of goods and materials to their organisations by risk-mapping and establishing alternatives. 

Dairy Crest, a manufacturer of British food brands, approved additional suppliers, extra sources of material and alternatives by identifying pinch points in the supply chain, ensuring greater flexibility. 

CPO Chris Thomson reviewed the stock management processes in terms of ingredients and packaging, factory planning processes and customer order to stock processes. All these processes had been in place for many years and were effective, but Brexit made it necessary to revisit all systems and processes. 

“It’s been quite an interesting experience to have a serious situation like this to open your eyes again and to challenge some of the existing business processes,” he says. 

He is not alone in his approach. Neil Butters, head of procurement at Inprova Group, says: “Before you think big, think small. I’d been trying to understand geopolitical risk and Brexit and other areas, and trying to work out how that impacted my organisation. What I ultimately decided to do was to take a fresh view of my organisation and the risk factors, and map them out.” 

Lesson 2: Revisit systems and processes 

“Brexit has forced many CPOs and their teams to look again at their suppliers, local sourcing plans, local versus international, and start to make some decisions about what their future supply should look like,” says Duncan Brock, group director at the Chartered Institute of Procurement & Supply (CIPS). 

Indeed, CPOs have been evaluating their supply chains at a more granular level. Many procurement teams have looked at what happens in the supply chain beyond the first contact with their own company. The view is if they can understand the risks posed at that distance, then they will be able to manage them before there is a direct impact on their business. 

“We haven’t fundamentally changed our sourcing approach. What we have done is put a lot more emphasis on our category management in our processes, and a lot more emphasis on how far up the supply chain we understand what’s going on,” says Dairy Crest’s Mr Thomson. 

Localisation might help some businesses, but switching to UK suppliers doesn’t always solve the problem. Establishing new suppliers has its own challenges and is rarely a seamless process, particularly if you are sourcing a strategic supplier. 

According to research by CIPS, almost a quarter of companies it surveyed were looking for alternative non-European Union suppliers. But the study also showed that half of British companies would struggle to find the suppliers and skills they need in the UK if they were forced to bring parts of their supply chain back home post-Brexit. 

“Anybody who approaches their suppliers in business as purely a transactional thing misses the opportunity to work special situations and to work closely together to manage whatever it is thrown at us. We treat our suppliers really as part of the business,” says Neil Ginger, chief executive of Origin, a UK manufacturer of aluminium doors and windows. 

Lesson 3: Stockpiling can’t solve everything 

Filling up warehouses with raw materials and medicines is a short-term solution. Stockpiling is an option for some, but many do not have the facilities to store surplus stock and those with perishable goods simply won’t be able to. 

Longer-term stockpiling won’t fix the challenges companies face over trading with EU customers and suppliers. Moreover, the additional costs of paying for the stock and then paying for warehousing that stock can be crippling, particularly for smaller businesses with fewer resources. 

Earlier this year, door and window manufacturer Origin began stockpiling aluminium extrusion from its supplier based in northern Spain in preparation for Brexit and disruption at the border. In total, the company stockpiled around £750,000-worth of materials, which is not an insignificant amount of money to add to your inventory. And then Brexit Day never came. 

“Beyond the things you can’t control, you’re just trying to stay as flexible as you possibly can. We bought more material to make sure we could see ourselves through some very short-term disruption at the border,” says Origin’s Mr Ginger. 

Lesson 4: Ditch the silos 

CPOs have become more rounded business people as a result of Brexit. They have had to work more intensively with other teams within their organisations, and have had to explain what they are doing to the board to ensure the business can keep functioning and fulfilling customers’ orders. 

Like many companies, Dairy Crest set up a cross-functional leadership group focused on medium to long-term Brexit planning. In addition, the company established a standalone cross-functional group focused solely on preparing for Brexit Day. They based their business planning on a hard Brexit, the worst-case scenario for many businesses. 

“We really focused our efforts on planning for the worst case and knowing that if it didn’t turn out to be the reality, we would be in a sensible position,” says Dairy Crest’s Mr Thomson.

This article, edited by Peter Archer, was taken from the Raconteur Future of Procurement report, as featured in The Times.  

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£30m Reasons Why UK Businesses Should Recycle Ink Cartridges

According to new research, British businesses stand to save up to £30 million per year if they recycle their used ink and toner cartridges.

UK printing firm CartridgePeople.com surveyed 1,000 UK workers on their recycling policies and processes within their organisations.

The research found that just 11 per cent of these organisations currently recycle ink and toner cartridges by sending them to a recycling centre, or refilling with ink to reuse in the business. This is an increase of 5 per cent from a previous survey carried out in 2014.

And, based on recycling costs provided by recycling organisation, Empties Please, these habits could be costing UK businesses approximately £30 million per year.

Business Falling Behind

More than 40 million ink cartridges are dumped each year in the UK, instead of being reused or recycled. If disposed of in general waste, ink cartridges can take up to 1,000 years to decompose.

CartridgePeople revealed that businesses in the UK are failing to reduce their carbon footprint in the office, despite the increase in household waste being recycled in the UK.

When questioned on the reasons for not recycling ink cartridges, 38 per cent of respondents confessed that there are currently no processes in place to encourage recycling at work.

The survey also revealed that 1 in 20 employees in the UK choose to ignore the recycling policies that do exist in workplaces, and put everything in general waste.

CartridgePeople.com spokesperson, Andrew Davies, said: “Many businesses and workers are unaware of the savings and extra revenue that can potentially be made from recycling ink cartridges. Ink cartridge recycling firms can pay up to 75p for original branded, or even remanufactured, ink cartridges.

“An individual ink cartridge can be reused or remanufactured by an ink cartridge recycling centre up to seven times, which reduces the amount going straight into landfill. We work with many companies in the UK to help reduce their carbon footprint and wastage, by supplying ink cartridge refill kits and tanks amongst other recyclable office supplies including LED bulbs and stationery.”

In the UK, the industries with the most green office policies are:

  • Design, Media and Marketing
  • Education
  • Manufacturing
  • Food and Catering
  • Administrative and support services

The financial and legal sectors currently have the fewest green policies of all the industries covered in the survey.

Reducing Carbon Footprint

CartridgePeople offered the following tips to businesses to help reduce their carbon footprint, and encourage recycling within the office environment.

  • Green Printing

To reduce financial and economic damage during the printing process, businesses can recycle or refill ink cartridges, use recycled paper, and keep hardware such as printers up to date. A new printer will be more energy efficient, in addition to producing an improved quality of print.

  • Switch Off and Unplug

Encourage all staff and employees to switch everything off at the end of the day, including all lights and equipment. This will not only save money on energy bills, but reduce overall consumption.

  • Which Bin Is It In

Make it easy for your company to recycle, by introducing paper and plastic bins for workers in which they can easily recycle their waste. In addition to this, businesses produce technological waste such as mobile phones, cameras, obsolete laptops and computers, which can be toxic for the environment when sent to landfill. There are many companies that will recycle and refurbish old tech.

CartridgePeople.com is a leading UK retailer of high quality printer ink cartridges, supplying home users, businesses and public sector organisations including schools and Government departments.

World Sleep Day – Why Sleep is Important in Business

Today is World Sleep Day, a good excuse to grab some extra Zs. Research has found that poor sleep is impacting over 5 million UK businesses.

The Average UK employee misses 8.5 days of work a year due to poor sleep

  • 1 in 3 people in the UK currently suffering from sleep problems

World Sleep Day is today and recent research has shown that one in three people in the UK currently suffering from sleep problems. It’s time for people to wake up to the impact poor sleep is having on the UK’s 5.4 million businesses.

Not only has poor sleep been linked with mental health conditions such as anxiety and depression, but also decreased productivity and concentration in the workplace.

The Cost of Poor Sleep

Information from the World Sleep Survey by Big Health, creators of the clinically-proven sleep improvement app Sleepio, reveal that the average UK employee loses 8.5 days of work a year due to poor sleep. Sickness absence and working-age ill-health, including poor sleep, currently costs the UK economy £100 billion a yearwhile sleeping pills alone cost the NHS nearly £50 million a year.

‘Poor sleepers’ (those who rated their sleep quality as below average) missed 14.6 days of work per year. Alarmingly, 60 per cent of these poor sleepers don’t seek to fix the problem and did not consult their doctors about their bad sleep.

Sleepio help some of the world’s leading companies, such as LinkedIn and Ford, to improve employee wellbeing and boost productivity in the workplace. The app creates personalised sleep improvement plans featuring Cognitive Behavioural Therapy (CBT) techniques to help sufferers overcome poor sleep without pills.

The 2,500 British participants in the World Sleep Survey stated that the top three personal impacts of poor sleep are a decline in energy levels (60 per cent), mood (48 per cent) and relationships with others (35 per cent). These repercussions affecting their work with a reduction in: concentration levels (46 per cent), ability to complete work (38 per cent) and ability to stay awake during the day (27 per cent).  

Addressing the Sleep Issue

“Poor sleep is the unspoken productivity killer in the workplace and it has been ignored for too long”, said Peter Hames, CEO and co-founder of Big Health. “Now is the time for employers to wake up to the problem of sleep – improving employee’s sleep positively impacts workplace effectiveness and general wellbeing.

“Big Health are working with some of the world’s leading companies to help them improve the sleep of their workforces with Sleepio, and seeing huge improvements in productivity and overall health as a result.”

Colin Espie, co-founder of Big Health and professor of sleep medicine at the University of Oxford, added, “World Sleep Day is the perfect time to acknowledge the widespread effect poor sleep has on our lives.

“Sleep is not an optional extra in life, it is a fundamental requirement. The consequences of a bad night’s rest affect us not only physically but also mentally and emotionally, seriously impacting our performance at work. Physically we will feel lethargic, mentally we become slowed down with poorer concentration and memory, and emotionally we may become irritable and rather down, with bursts of hyperactivity. In terms of daily life, no aspect of daily functioning is unaffected by sleep – least of all our jobs.”

Sweet Dreams

So, what better time than World Sleep Day to start thinking about your own sleeping patterns, and what you can do to improve this. Why not check out some gadgets that might help you sleep better, or get some tips from the sleep and productivity experts?

Whatever you do, make sure you sleep well this weekend!