Preparing for Brexit
There are now less than six months until the UK is planning to leave the EU, and we still don’t know the terms of any withdrawal agreement. It is possible that the UK will leave the EU without a deal, which would have wide implications for many UK businesses.
Whichever side of the leave or remain fence we stand, it is now essential that businesses prepare for the potential disruption which Brexit could bring.
The European Commission has published detailed notices to advise businesses of the effects of the UK leaving the EU. These notices cover topics from e-commerce to VAT, and are available in English on https://ec.europa.eu.
The UK Government’s guidance on how to prepare for a no deal Brexit can be found on gov.uk. This guidance suggests that there may be disruption to supply chains due to congestion at ports.
Some large businesses are starting to stockpile goods and raw materials in the UK, to cover for two to three months of disruption. Certain manufacturers are bringing forward their planned annual shut-down from Summer to Easter 2019, to avoid unplanned stoppages to production lines should parts fail to arrive on time.
Smaller businesses also need to prepare. Consider examining your supply chain to identify the risks which delays in delivery would pose to your business. How much stock can you hold of materials and finished goods?
Your suppliers won’t want to stockpile goods which they are not certain of selling. If you will need particular products delivered or printed in April or May 2019, you might prefer to get your order in early so the items needed for your business are reserved.
We can help you model the potential effects on your cashflow and profits which disruption to supply chains could impose on your business, but the time to start planning is now.