Blog: The Brexit
Time to determine and roll out your strategy
Still a lot is uncertain about what the results of the Brexit will be.
One thing is for sure though: if you want to minimize possible damage and capitalize new opportunities you have to act now.
How and what to prepare depends on your specific business and thus supply chain.
Increase in lead time and costs guaranteed
That trade will become more challenging is clear, simply because the UK leaving the European Customs Union will bring more rules and regulations. The Brexit doesn’t only affect the custom agreements between the UK and the EU, It will affect all rules and regulations. All agreements. Between the UK and the EU, but also the rest of the world! Think about it: rules and regulations for hazardous goods, work permits, the Pharma and food industry etc., it will all have to be (re)written.
The result: an increase in costs and lead time. Whether your supply chain starts or ends in the UK.
Look at your market share
The questions you should ask yourself:
- How many clients could I lose when I don’t sort things out before March 29?
- How is my new ideal logistic setup going to look like?
- Are my contracts Brexit-proof?
Depending on your market, relocating or setting up a 2nd warehouse might be a good idea. If you have your European or even your global warehouse in the UK and the vast majority of your customers are outside the UK, it is not a question when but where you should move your warehouse to. But when the UK makes up a good amount of your market, a 2nd warehouse on the mainland for your European market could be a good investment to optimize your European supply chain.
The Netherlands as easy and quick access
If you are looking for an easy and quick access to Europe: The Netherlands is your ideal partner to set up your supply chain. Close to Europe’s main markets, with a long trade history and thus knowledge, trade facilitating customs and regulations, with an excellent infrastructure by water, rail and road, The Netherlands guarantees your business the most effective supply chain.
Effects on time-sensitive shipment
When your business is dealing with time-sensitive shipments you have an extra challenge: you simply can’t afford longer lead times. The Brexit could therefore seriously affect your business model. In this case make clear where your challenges and opportunities are. Could you for instance move your production to the UK when this is your main market? Could the upcoming increase of local production and a more national market in the UK, be a new business opportunity?
But no matter where you are located and where your supply chain is heading: make sure you Brexit-proof any contracts you have! Look into your challenges and possibilities. Things will change. Be prepared, so your business and your supply chain is ready for the upcoming changes.
Jelle de Rooij
December 12th 2018