The numbers behind the logistics industry
The UK logistics industry is the backbone to so many businesses and elements of our everyday life, making sure that supermarket shelves are fully stocked and that ecommerce businesses can serve their customers.
Following a tumultuous couple of years, from our unique perspective of a technology company that works with over 250 UK logistics companies, we wanted to take a look at the numbers behind the sector and what this really means.
When most people think of courier and logistics firms their mind may often leap to the larger contract delivery brands that you see delivering parcels on a daily basis. However, according to a report by Logistics UK there are over 205,000 logistics enterprises currently operating in the UK.
The size of the sector cannot be overstated, with it contributing 10% towards the UK’s non-financial business economy and contributing over £127 billion Gross Value Added at the same time.
On top of this, if you take into account the entire length and breadth of the UK supply chain around logistics, this sector accounts for over 7,000,000 jobs in the UK from operations through to mechanics and drivers.
Of course, a key part of the sector is how it engages self-employed drivers to deliver goods around the country to both businesses and individuals. Some of the key numbers we see on a daily basis are based around the recruitment, onboarding and payments areas of engaging these subcontractors.
For example, for companies who haven’t adopted the latest technology such as the Wise platform, onboarding a new self-employed driver can take up to four and a half hours because of all of the different documentation and requirements. Now, companies who have adopted our integrated platform can do this in as little as half an hour, saving valuable administrative time for staff and boosting efficiency.
Moving forwards, as the industry evolves and continues to adapt following the COVID-19 pandemic and the effects of Brexit continue to be felt, it is going to be interesting to see how these numbers shift and how this shifts the perception of UK logistics firms in the long term.