Page 8 - BOSS Today Issue 56

BOSS Today #56 ECONOMICS

well as challenging suppliers to do we set clear expectations for our
their bit to support all of us. When customers and were competitive in
it comes to central cost inflation, the market place – being sensible
like the very significant increases in to protect our business and that
fuel and utilities, we have to pass on of our customers. This approach
the increases as they occur to our is working and is delivering
customers. This is not something partnership and collaborative
we enjoy doing but, given the thinking and understanding.
fine margins that distribution
businesses work on and the high BT: The Bank of England has warned “The energy price cap for
levels of service we are expected to that the UK is expected to face businesses should help, but
deliver, there is simply no choice. its longest recession since the
global financial crisis. How is the it is still uncertain what
JH: As we deliver a large, diverse financial landscape going to look will happen after the first
portfolio of products and services, for businesses over the next three
it was essential to communicate months? six months.”
clearly with our customers about Vicky Pryce,
the direct impacts of global supply VP: SMEs in particular are reporting Chief Economic Advisor, Centre for
chain disruption. Our customers serious cash flow difficulties and Economics and Business Research
are often front-line support the British Chambers of Commerce
services for local communities, has asked for a cut in VAT, a review
such as schools, so to enact this (again) of business rates and soft
effectively and sensitively, our loans for SMEs. The energy price
relationship management teams cap for businesses should help, but
actively engaged with customers to it is still uncertain what will happen
ensure they had the support they after the first six months. Many
needed, while our operations team firms are still reporting congestion
worked with suppliers to manage in ports and trading problems with
appropriate stock levels. Europe, plus increased bureaucracy
that has increased costs of both
SA-B: We ensure that we put the exporting and importing. In any
customer and the supplier at the case, Europe is slowing down,
heart of every decision we make. with manufacturing particularly
Our Divisional Managing Director badly hit, and that will continue, as
initiated strong group purchasing energy saving measures to partially
actions and we worked closely with make up for the loss of Russian gas
our suppliers on availability, price take effect.
increases and payment terms – as
we understand that they face the SH: I expect us all to face challenges
same challenges as we do. Then in relation to cost inflation and

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