Can you afford to NOT be Brexit ready? Follow allpack’s® guidance on steps you can take to minimise the risk to your company.
At allpack® we’ve been drilling down into four key areas of our business that we think needed further scrutiny: supply chain, financial, customers and resources. We’ve shared our plans with our customers and beyond that we invited our clients to join us in a LIVE webinar! Our webinar is now available to any client, past, present or future, so, please join us and if you haven’t done so already….start planning!
‘While there is still no certainty around what Brexit will mean….businesses that buy and sell from the EU need to have contingency plans in place which will be sufficiently flexible to cope with a variety of possible outcomes.’
We supply many SME’s and large Blue-chip organisations across Europe and the UK with packaging goods and services. For many companies packaging doesn’t hold the same value as the product, however, without packaging the supply chain would break down. For this reason, allpack® have taken on the personal responsibility of identifying key risks leading up to, during and after Brexit.
What areas did we identify to be most challenging?
We had four key areas that needed addressing in our Brexit preparations:
Supply Chain | Financial | Customers | Resources
So, how certain of your products are you?
What route will your products or materials be taking when they enter the UK?
Transporting your stock has always been a relatively pain free process, but with Brexit, companies can expect delays and bureaucratic hoops to jump through, so, have you or the transportation companies you use, planned to overcome this? If you haven’t already, start looking into using alternative ports and apply for an Authorised Economic Operator Licence, so your stock can be fast tracked when it arrives at customs.
Whether you are a small or large company, the financial implications of Brexit will no doubt have raised its ugly head. Depending on where you trade or purchase stock, foreign currency fluctuations could have a considerable impact on your cash flow. As prices rise your ability to meet orders may be diminished. If you depend on one currency provider, make sure you have a backup provider and where possible negotiate currency rates. Now is the time to start checking into how tariffs might affect product costs. You may not have the cash flow to meet rising tariffs, so look into sourcing goods from countries with lower tariffs to ensure that continuity of supply.
For our customers, who are the heart and soul of everything we do, we identified that talking to our customers was critical; primarily about supply chain and operations, forecasts and incentives that could gain pricing security. Keeping the dialogue going between you and your clients, will be key critical to how your business responds to future changes because guess what? Your clients will also be shopping around looking to secure their future and if they are not engaged in talks with you….they will be with someone else.
Last, but by no means least, we examined the adequacy of our resources: our team and our facilities. Show loyalty to your workforce and don’t neglect them. Brexit is a trying time for them too and feeling that your employer doesn’t care, could result in a skilled workforce looking for employment elsewhere. Offer assistance to non - UK citizens struggling with paperwork and where possible aim to reassure your workforce that they have job security.
Six suggested solutions.
Firstly, make your solutions work for your company and staff. Secondly, don’t reinvent the wheel make small, intelligent changes. The answers lie with ‘simple measures’; tracking, talking and above all working with business partners to minimise the risks.
Here’s our six step plan to Brexit planning:
- Delve deeper and don’t make assumptions about the companies you are working with. Obtain those Brexit plans!
- Use more than one supplier for anything, whether it be currency or goods.
- Gain as much support from the EU Exit Business Readiness Team, as possible.
- Check your arrangements with storage facilities, reserve trucks, purchase high risk stock items at competitive prices and check port side arrangements.
- Research how safe your products are. Just because it’s purchased in the UK, doesn’t mean the materials are not imported from somewhere else.
- Value you non-UK workforce. Support them to comply with legislation.
‘No one has all the answers…[remember] we’re all in this together.’
Brexit is going happen, one way or another and the effects of decisions made now, will have an impact on the UK and the Global market, so watch the allpack® Brexit plans in full here.
Use our advice to give your business longevity in the weeks and months to come and if you need further assistance, our dedicated team will be happy to support you further.
Just give us a call on: 01922 472 400.