Quality and loyalty guiding supply chain strategy says Barclays research

Quality and loyalty are the guiding principles of sourcing strategies, the survey of over 200 manufacturers revealed. Businesses believed the attributes are more likely to be found in British firms than overseas operators, the research found. Almost two thirds of those surveyed source commodities (41%) or components (20%) for their products from the UK rather than abroad (39%), with over half (53%) producing goods that are sold to the UK end user or used as components in UK production. For those that do source inputs offshore, 32% look to China as a key market, followed by 19% who source from Germany. When asked what the key deterrent is for trading outside of the UK, 36% state they simply prefer to source from the UK as a rule. This is followed by currency risk (19%), with one in ten fearing goods or payment may not be received. Mark Lee, head of manufacturing at Barclays Corporate Banking said: "There is a clear sign of patriotism amongst UK manufacturers as values, loyalty and confidence hold firm with proximity being seen as a key driver. Given the current economic climate, a focus on domestic strategies and procurement is understandable however manufacturers must not be afraid to play a lead role on the global supply chain stage." When it comes to choosing suppliers and winning business, the findings show quality is a defining factor. 40% of manufacturers surveyed select a supplier based on 'quality', followed by 33 per cent who stated 'price'. This perspective is reinforced when asked what wins them business with the key firms they supply, a majority 57% stated 'quality' although only 16% believe 'price'.