Getting Ready for Brexit
As we know, the UK will be officially leaving the EU on October 31st 2019. Brexit is a reality that businesses around the world have to face and prepare for, whether you are:
- Exporting to UK â€“ direct or indirectly
- Doing multinational trade via the UK
- Into the UK â€“ directly or indirectly
- Manufacturing and configuring for exports in the UK
- In all the above cases, Brexit will affect your business operations â€“in terms of cost and in terms of timelines. But it can be an opportunity and threat, depending on how a business is prepared to handle it.
While specific mechanics of how the Brexit separation will work remain unclear, itâ€™s certain that there will be:
- Impact on the movement of labour across EU and UK, affecting logistics workers
- Regulatory issues, which will bring in new standards/norms for production, packaging, distribution
- Potential trade tariffs that will impact the bottom line due to tax structures and duties
- Challenges to the free movement of goods along with demand and supply issues
- Other potential areas where we will see an impact are:
Tariffs: On finished, raw materials or intermediate goods, based on what is negotiated between the EU and UK.
Forex currency: Any depreciation of the pound due to impact of Brexit will one hand create more opportunity for exports from the UK, and on the other hand, lead to a rise in import costs.
Supply chain delays: The imposition of new customs requirements and additional documentation will likely cause delays in clearances, additional
Taxation: The UK could reduce corporate taxation to maintain and grow its share in trading activity, leading to enhanced logistics needs.
These are just a few of the many significant challenges that supply chain professionals with businesses need to appreciate and understand. Please read the following article so you start getting ready and implementing course of action to avoid impacts on your business: