By Alex Saric, smart procurement expert at Ivalua.
The government’s Brexit impact assessment has laid bare everything organisations have been worried about.
The warning is very clear – EU supply chains are going to face additional costs and burdens as a result of new procedures, regulations and reductions in traffic flowing across European borders. This includes new customs checks that will see Member States hold goods much longer, instead of the free flowing movement of goods we have today. With one month left, time is running out for organisations to prepare for Brexit D-Day.
Despite a potential vote being offered to delay Brexit, it’s vital that businesses ensure they are prepared for their landscape to literally change overnight. Organisations must take steps to adapt regardless of how Brexit plays out, particularly looking at any new tariffs that could apply to them.
Businesses must also assess their suppliers and look for potential areas where slowdowns might occur, putting measures in place to respond to immediate disruptions such as supply shortage or how friction at the border will impact them. Without these preparations in place, organisations risk being on the backfoot.