With the uncertainty of 2020 continuing, Brexit is becoming top of the list yet again. The transition deadline of 31st December 2020 is looming with no clear-cut withdrawal agreement, UK businesses have no choice to prepare for an uncertain future.
The UK could potentially leave under a ‘no deal Brexit’, meaning that there could be no trade deals agreed. Leading to a significant impact on supply chains, affecting warehousing and storage services the most.
But how should you prepare for Brexit?
It is predicted that there will be an increase in the amount of paperwork needed to move shipments across borders. Resulting in long delays which could hold up deliveries.
With these predicted restrictions and delays, Matt Hancock has urged pharmaceutical firms to stockpile six weeks’ worth of drugs ahead of the end of the Brexit transition period. This is particularly important as some of these stockpiles were used up during the lockdown earlier this year.
In addition, other industries such as food have been stockpiling to prepare for potential trade barriers or even high importation fees.
These stockpiling needs will create a demand for suitable UK warehousing space. Especially as after Brexit, companies may look to store more in the UK to avoid extra costs and delays that could come with imports and exports.
The demand shared with the upcoming Christmas period. The retail’s busiest period of the year within the supply chain. Including Black Friday and Cyber Monday. Are your systems and procedures strong enough to meet this demand without disruption?
Review where you can optimise and improve your operations now before demand puts strain and disrupts your business. It’s time to proactive rather than responsive.
Prepare & Educate
Use this time to ensure your business is equipped to adapt to new restrictions. Review how you could advance your processes, for example, with the latest technology to make sure you’re prepared to accommodate with little disruption.
So, rather than waiting for changes and having phases of disruption, be forward-thinking to help keep your business ahead of the curve. A great example of this could be ensuring systems and procedures are in place to manage the increase of paperwork needed at customs declarations.
Applying for relevant permits and necessary licences could help you prepare to save you time and money. An Authorised Economic Operator (AEO) is an accreditation you should consider getting for your business.
The accreditation demonstrates that your business can operate securely in the supply chain (AEO-S), or operate a high level of compliant Custom Processes (AEO-C). AEO is recognised across the EU and globally, business who are accredited are subject to fewer checks by Customs Authorities.
Similar variations of the AEO are used globally, although no agreement has been made between the UK and EU post-Brexit. Being aware or registered could put your business ahead.
However, the accreditation process is not straightforward. Getting approval can take up to six months. Customs will carry out checks on your premises to ensure your systems and procedures are up to standard.
Due to the uncertainty that is Brexit, no one can predict how it will play out. The best thing you can do to prepare is to be up to date on the UK and EU government Brexit updates.
Understand and set out your strategy by listening to the advice from experts and setting contingency plans in place for worst-case scenarios using all your resources to keep you ahead of the competition.
Discover how Vision can help you with your Brexit preparation advice and needs. Please feel free to get in touch with one of our team today.