UK logistics inefficiency costing businesses customers and market share

Transport inefficiency is translating into significant commercial losses for UK businesses, with one in three organisations reporting that logistics problems have cost them customers or market share, according to research by GXO.

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GXO is a global contract logistics provider that manages warehousing, distribution and transport operations for companies across sectors including retail, consumer goods, technology and manufacturing.

The findings come from a survey of more than 1,000 senior supply chain, transport and logistics decision-makers at UK companies. Some 33% said inefficiencies had resulted in lost customers or market share, while 41% reported higher costs as a result of operational inefficiency.

GXO found that 89% of businesses expect logistics operating costs to increase over the next 12 months, while 85% have increased investment in fleet optimisation.

The focus is increasingly on integrating systems and data so that investment delivers measurable improvements in productivity, service reliability and fleet efficiency.

GXO’s research however suggests that investment is not necessarily translating into consistent performance improvements. Technology integration was identified as the biggest barrier to transformation by 44% of respondents, followed by budget constraints and resistance to organisational change.

Respondents linked inadequate transport optimisation technology to higher maintenance costs, longer delivery times and increased CO₂ emissions.

GXO's argues that efficiency and decarbonisation can increasingly be addressed through the same measures, including better-planned routes, fewer empty miles and greater collaboration between logistics networks.

The findings are consistent with the wider logistics sector. Logistics UK's 2026 industry report identifies connectivity, efficiency, skills and decarbonisation among the key challenges facing the sector.