UK firms holding double the stock amid ‘inventory crisis’


New industry data reveals that manufacturers are holding double the amount of stock compared to pre-pandemic levels as the world’s supply chain woes take on a new form.

Unleashed Manufacturers Health Check report used data from its inventory management software to track how SMEs in the UK have fared in 2022. The report shows businesses forced to stockpile huge quantities of goods as they navigate delays and shortages, against a background of rising inflation.

The analysis of more than 4,500 SMEs paints a picture of manufacturer health by examining four main data points: the value of stock on hand, Gross Margin Return on Inventory (GMROI)*, fulfilment days, and the price paid for goods purchased.

Overall, stock on hand levels for manufacturers in the UK jumped by 99.7%, from an average of £365,736 in Q3 2019 to £730,681 in Q3 2022, while GMROI dropped from 2 to 0.9 in the same period, and fulfilment times fell from 20 days to around two weeks.

Meanwhile manufacturers are paying 10.24% more for their goods now compared to the start of 2022.

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