Nisa Retail boss admits industry facing ‘challenging operating conditions’

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Nisa Retail’s chief operating officer has spoken of the “challenging operating conditions” the industry is facing as driver shortages, the impact of Covid and the “pingdemic” hit the supply chain.

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John McNeill says the recent combination of one-off factors “have cumulated to create an extraordinary environment the likes of which we have never seen before.

“The nationwide driver shortage in the haulage sector is something we’ve been aware of for some months.

“We’ve been working with DHL to tackle this with a recruitment drive that was instigated in June and will naturally take some time to come to fruition.”

Writing in the latest issue of the retailer’s Consortium magazine, he says: “This has been compounded by the so-called ‘pingdemic’ that quickly had a profound effect on the supply chain and continued to do so throughout the month of July, rendering many suppliers without the resources to pick, pack and ship out products.

“Coupled with the warm weather, these factors have all come together to create a set of extremely difficult circumstances for us all to navigate and we’ve all seen the effect across the independent sector as well as the multiples.”

He admits that supplies to Nisa outlets have suffered in recent months because of the challenges the company is facing.

“Our own pick, vehicle and driver capacity has been impacted with demand three and even four times the normal level, meaning we have had to make some difficult decisions to disrupt order schedules, along with the other wholesalers and multiple retailers who we are seeing taking similar action.

“We want to make it clear that the steps we’re taking are made to try to limit impact on partners and ensure that when you receive your deliveries you get as much volume as possible.

“We don’t take our decisions lightly, because we know the impact of cancelled orders on you and your business.

“However, we have had to take significant action to re-set the network and return it to required levels.

“Everybody is working very hard to improve the situation, find solutions and get normal service levels resumed.

“The teams on the ground at Nisa and DHL are doing everything they can to support partners and the efforts being made should not be underestimated.

“We anticipate the challenges we’re all facing will be with us for some time and your ongoing support is appreciated.”

He ends his message to Nisa retailers by saying: “I’d like to take this opportunity to congratulate you on the way in which you have served your communities.

“You continue to demonstrate your agility and resourcefulness as independent retailers in your response to the challenges and you’re a credit to the industry.”