Brexit’s Impact on Supply Chains
Over reliance on a large customer or supplier could increase Brexit-related risks. These risks include; disruption to supply chain, shipping timescales, pricing volatility and diversification by your own supplier or customer, potentially leading to a break in supply.
UK businesses should spread their risk where possible and stay close to all key customers/suppliers to gain an insight into their plans and understand their financial robustness. It may be necessary to impose credit limits or other controls.
Actions
- Assess supply chain risks both from a customer and supplier perspective
- Consider alternative strategies to spread or otherwise control risks
- Consider how to resource closer supply chain management / build strategic alliances (e.g. consider sharing unused apprenticeship levy)
- Look to secure renegotiated contracts with customers / suppliers, seeking to mitigate risks.