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UK not ready for no-deal Brexit: comment

Posted by EUbusiness at 21 December 2018, 00:15 CET |
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Following the news that MPs have agreed to a dramatic escalation of preparations for a no-deal Brexit, Britain's leading business organisations have issued a stark warning that the country is not ready for such an outcome. John Perry, managing director of leading supply chain and logistics consultancy SCALA, outlines the actions businesses should be taking with just 100 days to go.

"Until recently, a no-deal Brexit was seen as such a remote possibility that many businesses still don't have contingency plans in place. However, whether a deal is agreed or not, there a strong possibility that Brexit will cause months of severe disruption to UK/EU cross-border movements that businesses should be preparing themselves for.

"We've heard reports in recent weeks of companies that have begun stockpiling goods and raw materials, in an effort to minimise the impact of this possible disruption. While this will certainly buy them some time, it is only a short-term solution.

"In addition to stockpiling, businesses should be urgently reviewing their supply chains to identify any major risk areas and implement risk-reduction strategies. Affected organisations should also consider applying to become an Authorised Economic Operator, as it's widely agreed that achieving AEO status is likely to be one of the most effective mitigating factors in any Brexit situation.

"If, however, Article 50 is revoked, as many are hoping it will be, this will still have been an extremely valuable exercise. After so many years of frictionless trade, it's clear that many of us have been delaying on these big decisions. If nothing else, the past two years have proven how precarious our situation really is. Brexit should therefore act as the catalyst businesses need to re-optimise their supply chains, ensuring they are as agile as possible and prepared for any future unforeseen events."

SCALA is a leading international consultancy based in the UK, which specialises in procurement, supply chain, logistics and customer service, and provides independent and objective expertise.

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