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BHETA urges dialogue in preference to supply chain penalties

BHETA is urging UK retailers and suppliers to work closely together and share latest data to mitigate current international supply chain issues – in particular, potential problems in fulfilling orders in total, to contracted time. Specifically, it is urging dialogue ahead of any resort to the legal sanctions and rapid fill rate penalties, starting to be seen in Europe and the rest of the world.

This campaign is part of a Europe-wide initiative from the combined efforts of the European DIY-Retail Association (EDRA), the Global Home Improvement Network (GHIN) and the Home Improvement Manufacturers Association (HIMA) who are urging European suppliers and retailers to work together to find solutions to the impact of the supply chain crisis. More than 800 suppliers are represented across Europe by the various trade associations backing this campaign.

READ THE Statement by HIMA, EDRA and GHIN.

Chief Operating Officer of BHETA, Will Jones explained, “We are all aware of the combined impact of the pandemic and the volatility of consumer demand, together with the Ever-Given incident in the Suez Canal. Numerous companies depend on well-timed shipments of product or product components to fulfil time-sensitive orders to retail customers. Based on what we are seeing in markets outside the UK, they could be at risk of penalties should these shipments not be fulfilled.

“Other companies are facing difficulties due to huge price increases in transport cost, shortage of transport capacity, increased prices of raw materials such as steel, wood, oil derivates. This is creating pressure on manufacturing plants worldwide and especially the sourcing of goods from China. Many supplier members have had to raise their own prices just to maintain normal profitability.

“Now more than ever, BHETA is calling upon all stakeholders in the UK supply chain network to find reasonable solutions in the event of possible delivery disruption. Good consultation, mutual understanding and open ‘as it happens’ communication on the facts are key. The ability, openness and flexibility to offer alternative products at short notice, and the possibility to review supply contracts to cover difficulties in fulfilling existing obligations by force majeure clauses, can help ensure a comprehensive supply of products to consumers, which is what we all need be paramount. This will also enable suppliers to continue taking every measure to protect employees from Covid-19.”

Will concluded, “In this challenging set of circumstances, all parties must work together in a fair and practical manner. Only by doing so, and exchanging all possible data, can we ensure the best results in bringing goods designated essential to consumers around the world.”

BHETA has around 300 supplier members, representing £15.5 billion at retail sales and 15,000 employees. For more information about its data, business support, export and networking services, contact Helen Farnell at the BHETA Member Services Team on 0121 237 1130 or alternatively, email on hf@bheta.co.uk


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