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New study: Traffic poses challenge to production

Traffic delays mean that companies are forced to stop production, shows new study. 
Some companies choose to transport their raw materials at night to avoid delays, shows new study.

Publiceret: 20.09.2017
Af Peter G. H. Madsen mail

In the past year, more than every third company has had to stop production due to delayed deliveries caused by transportation issues, shows a survey among 670 companies by Rambøll for the Confederation of Danish Industry in connection with Transport Day 2017.

According to Director of the Danish Transport Federation Michael Svane, the study highlights that congestion and delays are not just frustrating for those who are stuck in traffic but also affect the operation of companies. 

“It is a waste of resources when employees and machines must wait for deliveries that are stuck in traffic. It is harmful to the effectivity of the Danish companies that cannot wait for delivery of parts that are important for their production,” he says.

See also: Is congestion making your commute a pain? Welcome to the club

To avoid traffic, drive at night

What do companies do to adjust to delayed deliveries?

Several things. For example, they have larger stocks, they allocate additional time to transport and order delivery during the night when there is less traffic, according to Rambøll’s survey.

However, Michael Svane, Director of the Danish Transport Federation, points out that none of these measures are free.

“Insurance is costly. This is also the case when companies build up larger stocks to avoid that delayed deliveries stop production. It would therefore have an effect on the bottom line for many companies if we could reduce delays,” he says and adds:

“Traffic and delays create challenges for production. Meanwhile, many companies find that employees spend more time in traffic on a daily basis, which makes it harder to attract employees.”

Investment in infrastructure

Among companies, there is a great interest in an increased investment in the Danish road network so that delays can be avoided.

In DI’s annual survey of the local business climate, 7,600 companies were asked to point out which issues they would like to see prioritised by municipalities. Here, infrastructure and transport options emerged as a clear winner, ahead of labour and lower taxes and fees.

In the same survey, more than half the companies point out that traffic-related issues have become worse in the past five years.

See also: Businesses: Difficult to get Danes to commute very far

It is a waste of resources when employees and machines must wait for deliveries that are stuck in traffic.
DIRECTOR MICHAEL SVANE, DI TRANSPORT
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PUBLISHED: 9/20/2017 LAST MODIFIED: 9/20/2017