How will the London Olympics affect transport and distribution across the country?

With less than a year to go, excitement about the Olympics is gradually mounting. But what does the largest sporting event ever held mean for businesses and the supply chain?

First, there is going to be a huge increase in visitors to London and the surrounding area. Some, including Lord Coe, have suggested up to a million extra but more realistically - based on recent games - it is likely to be in the order of two to three hundred thousand who will be coming to stay in London specifically for the event. On top of this are people from the UK living close enough to make day trips and the several thousand athletes, supporters and officials who are more directly involved.

This is going to increase demands on food and general retailers, food service businesses, hotels and other businesses. All of these, to some degree or another, rely on the supply chain to maintain business continuity. This is predictable and many of these businesses will already be preparing for the upsurge they expect to see during the build-up to the games and the likely peak during July and early August.

Hotels can plan with some confidence that occupancy rates will be near to 100 per cent during the games and schedule their deliveries accordingly. But what about food retailers and food service? The volume of customers will increase for sure but by how much and what will they want to buy, and when? Will they prefer to sit down for a meal in a restaurant or will they buy snacks from a nearby take-away, supermarket or convenience store? Those outlets that maintain stock availability will do good business but those that plan badly will miss the opportunities that come their way. Suppliers may need to schedule deliveries more frequently or at different times of the day to fulfil the increased demand.

The Olympic site will also present some interesting logistics challenges. This is a new venue that will probably be at its busiest at the time when it has only just fully opened. This is not normal for most developments which gradually build up to peak capacity over many weeks or months. Some of the country’s largest and best known retailers will be opening stores in and around the site over the coming months and planning their logistics operations will be a key part of their launch phase. Getting it right first time will be the only chance to maximise the business potential.

The second key issue for the supply chain is how this unprecedented event will impact ongoing operations. Traffic levels in and around the main venues are likely to be much higher than usual which will affect scheduling and planning or normal deliveries. Everyone involved with the supply chain will need to take this into account. Open access events such as the marathons, triathlons and cycling road races and time trials will inevitably lead to road closures, large crowds and increased traffic. This has already been shown by the success of recent “trial” events such as the cycle road race in August. Most of these events are scheduled for the weekend but anyone making or taking deliveries on the days affected will need to plan well in advance.

The authorities are not complacent and have been planning for most of this since 2005. Infrastructure has been upgraded and the various bodies involved, including LOCOG, Transport for London and so on, are putting plans in place to cope with increases in train passengers and road traffic. TfL said it had spent more than £6bn upgrading the network for the Olympics. LOCOG is aiming for 100 per cent of spectators to travel to venues by public transport, cycling or walking. It has also published lots of information on road closures and other changes during the games.

Some commentators are suggesting that traditional tourist numbers in London will be lower than normal. Indeed, studies of the recent games in Sydney, Athens and Beijing have suggested that tourism numbers over the whole year might be down slightly. London may be different because of its location and size but even so everyone expects the number of visitors during July and August to be much higher than normal. So, with less than a year to go the venues are open, the trial events are taking place and the athletes are gearing up for their final push towards their dream of gold. The only question that remains is “are you ready too”?