The impact of Brexit on your supply chain
Improve top-line growth and lower costs
Integrated and highly complex pan-European supply chains are commonplace for manufacturers based across the EU, enabled by the free and rapid movement of goods and cross border trade – both in components and finished goods. However, Brexit may disrupt the efficiency and cost effectiveness of your current supply chain.
The introduction of tariffs, customs duties and other barriers to trade could have significant implications for how manufacturers source materials and components, assemble products and access consumer markets. With a high number of small and medium businesses in the supply chain, the implications could be significant if the supplier base is not ready to adapt to new trading regimes to maintain price and production and supply standards.
Brexit will require an overhaul of all supply chain processes governing everything from planning (taking into account additional lead time for customs), stock levels (to cover for increased lead time and uncertainty in supply), supply chain optimization (changing the infrastructure and supply chain configuration to reflect the new balance of supply chain cost and service, reassessing central European inventory nodes) and supply chain operations (dealing with new customs processes and compliance). As a consequence, Brexit will also require a full review of enterprise systems to reflect all of the supply chain process changes required, additional data to be captured and reporting to be facilitated, and see whether enhancements are necessary due to higher volumes and changes in requirements.
The uncertainty on possible Brexit scenarios will drive companies to increase the control of pre-Brexit processes and systems, to be able to mitigate supply chain risks, perform supply chain audits and adapt quickly when and where requirements change. As supply chains are mostly cross-company, the real challenge will be to also mitigate the risks in the supply chains of the suppliers and supply chain partners
Deloitte’s Global Supply Chain practice focuses on delivering practical, strategy-driven value through advisory services that optimize, reinvent, and improve the supply chain from end to end — design, plan, source, make, and deliver. We tackle organizations’ most complex issues by drawing on global capabilities that span all areas of business strategy and operations and industries including Consumer & Industrial Products; Energy & Resources; Financial Services; Technology, Media, & Telecom; and Health Sciences & Government.