Logistics providers need to have the geographical reach and capabilities to support retailers as they search the world for the most cost-effective sourcing locations, according to Barclays Corporate.
A study by the bank highlights the fact that while China remains the number one sourcing location for UK retailers, a significant number are looking at alternatives such as Vietnam, Spain, Belgium, Israel, Hong Kong, Romania and Brazil.
Rob Riddleston, head of transport and logistics at Barclays Corporate, said: “Logistics providers need to ensure they have the geographical reach and capabilities needed to meet the demand of retailers and grasp the opportunities available. A collaborative approach to the whole supply chain process with manufacturers, retailers and logistics operators all working in close harmony will allow supply chains to operate most effectively in terms of time and value for money.”
The study found that despite the fact that inflation in China had reached a three year high of 6.5 per cent, more than a third of UK retailers regarded it as their preferred source.
The USA and Germany were the second and third most popular supply destinations.
However, when asked where they were looking to source goods from in future 13 per cent of retailers tipped Vietnam as their destination of choice for clothing, footwear and accessories as well as industrial wholesale items.