Georgia Hartley-Brewer | 22 December 2020
Our latest research reveals that one third of the UK’s largest listed retailers have switched to using alternative suppliers to mitigate the impact of a possible ‘no-deal’ Brexit.
A potential ‘no-deal’ Brexit could make retailers pay tariffs on goods which they are currently importing tax-free from EU member states. Some retailers are therefore shifting to using some alternative suppliers to avoid the risk of their costs increasing.
Some other key findings from our analysis are:
- 20% are planning for potential employee shortages
- 13% have changed their distribution channels or are using different ports
- 13% are building warehouses in the EU to facilitate the storage and transport of goods within the bloc
- 13% have implemented hedging policies to reduce the cost of possible currency fluctuations in the event of a ‘No Deal’ outcome
Retailers are being left with little time to prepare for the new arrangements post Brexit, whether a deal is agreed at the final hour or not.
These challenges are creating a demand for companies to hire specialist operations interims with experience in logistics and supply chain planning. These are individuals with previous experience transforming logistical operations of businesses as they adapt to new environments.
Interim managers with an expertise in implementing change strategies to supply chains will be invaluable in helping retailers through the difficult next few months.