Supply chain bosses confirm Brexit stockpiling

BREXIT NEWS

Supply chain bosses confirm Brexit stockpiling

Bosses in many British companies are already looking to arrange for various pessimistic scenarios around Brexit, as the government still looks no closer to securing any trade deal with the EU before March 2019.

One of the biggest issues for those within supply chains is how this could affect import and export timings, with new figures revealing that even a 30-minute delay to every consignment could see one in ten businesses go bust.

Research from the Chartered Institute of Procurement and Supply (CIPS) suggests that even half an hour’s average delay at UK and Irish ports could send businesses under, and that more preparation is needed by many businesses to strengthen contingency plans.

An inability by this government to deliver a trade deal before next March could see lengthy queues from trucks looking to enter and leave the UK, with hugely different sets of paperwork and increased custom checks adding serious delays to trade.

Over 1,300 supply chain managers from both the UK and the EU were interviewed in the survey. On the whole, it seems that a delay period of between 10 and 30 minutes on top of usual proceedings would be enough to massively impact many businesses, which shows just how tight margins already are.

With just over six months to secure a deal, it would appear that time is running out on both sides to get a deal through. However, embattled Prime Minister Theresa May has found herself defending her Chequers plan from all sides, with rebel MPs in her own party, the opposition to government, and negotiating chiefs from the EU all vetoing her proposal in its current form.

Many leading businesses have already claimed that the impact from a no-deal Brexit could be huge for their company, including Honda and Jaguar Land Rover, which both warn of serious delays on the borders and the effect that it will have on the economy.

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