Tetley cuts costs to beat Eastern promise

Tetley Tea is having to cut supply chain costs as a result of fierce competition from low-cost production in Eastern Europe, according to operations director Steve Eastham.

Speaking at the annual logistics debate organised by Scala Consulting, Eastham said: "We need to absorb inflation, then achieve year- on-year cost reductions."

Tetley had achieved major cost reductions by focusing on the firm's strategic objectives, he said, adding: "We should look at tying cost reduction to environmental improvement. We are putting in an extra layer per pallet, increasing to a real 95% vehicle cube utilisation That means fewer miles and fewer vehicles - and that is good for our costs and good for the environment. Make the environment part of your strategy - and then make it part of your team's objectives."

Eastham indicated that Tetley was investing heavily in training programmes to strengthen the company's internal talent pool. He also said it was keen to explore collaboration opportunities.