In the lead into Brexit, reports have identified Supply Chain and Logistics-related issues amongst the key challenges facing companies in Ireland. So, The Logistics Consultants have been active in liaising with key stakeholders such as Enterprise Ireland, Irish Exporters Association and the Revenue Commissioners to get a detailed understanding of Brexit-related issues in order to deliver practical advice and solutions to our clients.
Rather than take our lead from the latest news reports, we believe it is vital to take all of the sentiment out of the process and to focus on the likely outcomes as they relate to businesses in Ireland.
View CEO Ronan McDonnell in discussion with Enterprise Ireland, Preparing for Brexit video series.
According to an unpublished report prepared by Revenue, “the administrative and fiscal burden cannot be underestimated”. The customs requirements and resulting bottlenecks could increase lead times, and in turn impact service levels. The impact of delays on individual companies will depend on specific customer service requirements. However; we envisage particular problems for companies servicing just-in-time operations (e.g. automotive, construction, etc.) or those required to meet specific delivery slots at Retail Distribution Centres. For some suppliers, delays could have catastrophic consequences. Based on conversations with businesses in Ireland, some are already reviewing options for holding stock in the UK to mitigate potential problems stemming from delays at ports.
In the event that UK and EU regulations diverge in a post Brexit environment, products which are subject to regulatory requirements governed today by EU regulation may require alternative registrations and labelling.
It is likely that Supply Chain IT systems will need extensive work to reconfigure information such as raw materials, transport options, supplier, invoicing, duties or VAT.
We recommend that companies should:
- A Senior Manager should take responsibility for preparing a Brexit Strategy,
- Maintain contact with development agencies and trade bodies to get best advice and reliable information,
- Avail of supports and grants to engage specialist consultants with the ability to deliver detailed information and to provide tailored solutions,
- Analyse the supply chain to understand each inbound and outbound channel,
- Develop scenarios based on ‘what if’s’, taking into account the possible implications of tariffs, other administration and associated costs, possible delays, etc.,
- Develop plans to mitigate risks,
- Maintain regular contact with supply chain partners to understand their thinking and to pre-empt any threats likely to impact their businesses.
- Be prepared to act on the basis of what ultimately emerges from the Brexit process.
The Logistics Consultants can provide specialist advice on imports, exports, customs procedures and documentation, international distribution services and logistics solutions; and can help companies prepare Brexit Strategies and address the supply chain challenges posed by Brexit.