The possibility of a no deal Brexit puts UK supply chains at risk


In today’s statement in the House of Commons, Boris Johnson has confirmed his intention to deliver Brexit in just 98 days on the 31st of October – even if that means crashing out without a deal. This would present significant risk to organisations in the UK dealing with EU countries who would be hit with tariff changes, or face bottlenecks in movement of goods which could lead to late fees and other costs.

Alex Saric, a Smart Procurement Expert at Ivalua warns that businesses trading with Europe need to urgently review supply chain operations ahead of Brexit, or risk being unprepared for the cliff edge posed by leaving without a deal.  In his comment below he offers some advice on how companies can prepare and ensure their supply chain is flexible enough to roll with the punches.

“In his first speech, Boris Johnson once again underlined his commitment to leave the European Union by the 31st October with or without a deal, putting organisations trading with Europe back on red alert. A lot of businesses have been in no-deal denial for some time, and still aren’t prepared for the free movement of goods to potentially come to an abrupt end. No deal means no transition period, a legislative cliff edge that gives organisations little chance to adapt, meaning the business landscape will literally change overnight.

 “In order to mitigate the risks posed by a no deal Brexit, businesses need to evaluate their supply chain and identify potential bottlenecks for the movement of goods, as well as how new tariffs would affect prices ahead of the 31st of October deadline. By doing this now, organisations can pinpoint contracts that could be at risk due to incurring late fees or missing SLAs, allowing them to plan and communicate with customers about how they are going to handle the predicted supply shortages and delays. Without these preparations in place, organisations risk being on the backfoot as they attempt to navigate potential supply chain chaos.”