Supply chain planners can’t know what post-Brexit trade looks like, but have to plan for it anyway. Andrew Underwood and Brian Connell outline the eight things they should consider.
By Andrew Underwood and Brian Connell
Brexit threatens to rip up the rules on how supply chains operate across Europe. Tailbacks at border posts are only the most visible example of how global logistics networks linking farms and factories to customers might have to change after the UK leaves the European Union in 15 months’ time.
But your response doesn’t have to be just about mitigation. A minority of firms – and I would put the proportion as low as 10% - recognise Brexit as a strategic opportunity to challenge their supply chain status quo and do things differently: to exit unprofitable lines or to make them profitable again.
Whether you have ambitious aims or are simply in mitigation mode, you should already have well developed plans and be ready to activate them. The key question is when. That’s ultimately a political judgement based on how likely a future trade agreement or transition deal is. But given what has to be done by March 2019, it’s becoming increasingly difficult for corporate leaders to sit on their hands and hope. An increasing number I speak with are poised to make their move as soon as the first quarter of 2018.
This edition of the KPMG Brexit Navigator is designed to help you address some of the most urgent issues from managing a squeeze on working capital, to avoiding customs chaos and how to exploit that strategic opportunity.
In addition, here are eight issues we’ve been discussing with clients, which should also be on your radar.