Government announce more taxes which will increase freight rates – again, but SCS clients are ok.

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three_dimensional_graph_growth_400_clr_10611 (Custom)

I cant recall a year with more increases that effect logistics? Its not all bad and the good news in that this latest ones wont effect you  but oh my gosh it has casued me to reflect…

 – Minimum wage increased 4.5%

 – Health and Safety compliance costs are increasingly massively. SCS already support a 9 person OSH committee to ensure compliance under current legislation, we see the additional compliance for us increasing another +10k/annum. If you didn’t read my last blog you should and at least check out the comparison chart (it’s only one page) http://supplycs.com/index.php/massive-changes-in-osh-legislation-will-force-many-people-to-3pl-or-out-of-business/

 – House prices are out of control and forcing a dramatic shift in our culture as Kiwis, most low income earners can no longer afford this asset, the OECD last weekend claimed NZ is now the least affordable country in the world to live in with regards to housing. Most people I know in the mid 30’s to mid 40’s range have mortgages of over 500k (OMG thats half a million dollars)

 – Petrol (91 Octane) has increased 27% in the last five years and about to increase again this month.

 – Diesel has increased 28% in the same period

 – Road User Charges are increasing up to 10% depending on the class of vehicle, this month, compared against last year – see below (click on it to enlarge)

 – rates are up, food is more expensive, power prices are consistently increasing etc…

So I’m struggling to see the impacts of the rock star economy but I’m stuck out in warehouse land so perhaps you have a different view? If you do drop me a line.

The good news is that we’ll absorb this latest one which means our budgeting advices are still on track as per previous posts.

The other good news I want to shout from the rooftops is that despite some inevitable increases we do pass on from time to time historically we have managed to control annual increases to less than 1% on our total charges. Check the budgeting link in the next paragraph to view our scorecard.

As advised earlier our budget advices are now being posted via this blog now so that are transaprent and recorded, our last major post and budget-update was in March  http://supplycs.com/index.php/budget-update/

If you ever have any questions/concerns/comments about pricing please contact me directly: brad@supplycs.com. We try to be proactive, transparent and make sure everyone gets fair warning but sometimes communications fall through the gaps (e.g. IT issues) or we zig instead of zag. Our goal is to try our hardest to control costs, if we have to pass them on explain why and give as much warning as possible (never less than 1 month)  If there is anyone else in your organisation you’d like added to these posts so they are kept up to date please drop me a line or simply sign them up directly on our website yourself (it’s very easy).

Cheers and have a great day!

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