With the exact proposition of what Brexit brings not yet known, enabling risk management within operations remains high on the business agenda.
Using supply chain analytics with up-to-the-minute data is a good way to manage the process. We recognise that there are some things that are out of our control. However, by putting in place contingencies now, you can ensure your business is in the best possible shape as Brexit plays out this year.
In this blog, we highlight the supply chain risks associated with Brexit and what you can do to mitigate the financial implications associated with them.
Supply chains risks caused by Brexit and how to tackle them
Analyse key staff
This is about workforce planning – if not done already, look at analysing your key staff countries of origin (especially if your business uses seasonal migrant labour from the EU). By utilising the geographical visualisations in tools, your business can identity the probable future change in this area and determine the impact on your cost base.
Monitor exchange rates
It goes without saying that this is a key variable. Use the feeds available to monitor the movement of the pound in 2021.
Build a traffic light dashboard
Begin with creating a dashboard which outlines your continental-based suppliers and customers. Include a simple traffic light rating system based on those supply chain risk factors that may affect trade with them.
ERP systems like Microsoft PowerBI are powerful tools that you can use to make this type of analysis easily and effectively. There’s no need to completely overhaul all your data to add risk ratings – fill out an Excel-based risk register with extracts from your ERP database to get instant results.
Link direct to market pricing
PowerBI can help your business create a dashboard for this in minutes rather than days. If your business is affected by prices on the commodities market, utilise the dashboard to take advantage of direct links to market pricing, as well as make future predictions using historical analysis.
The new rules are here
We’ve outlined below five key regulations with new information that has been published since the transition period ended. You can read our previous post for a more in-depth look at the financial regulatory changes when preparing for Brexit but here’s a summary:
- Importing/exporting tariffs - Some British businesses are finding that goods not largely made in Britain could attract tariffs. You can read more about this on the UK government’s website here.
- Regulatory amendments - The FCA have published a press release about the regulatory changes firms face which you can read in full here.
- The Northern Ireland Protocol – At the time of writing, this protocol has caused major disruptions in Northern Ireland, with hundreds of products caught up in supply-chain delays due to the amount of extra red tape. The hope from retailers and wholesalers is these issues solve themselves in the coming months as the industry adapts to the protocol.
- VAT repercussions for UK businesses - The domestic VAT rules in the UK (including Northern Ireland) have stayed the same, however, the VAT rules relating to imports and exports to and from the EU have changed.
- Postponed Accounting Scheme – This new scheme allows VAT-registered businesses to declare and recuperate VAT paid on imports through the VAT Return.
For a more tailored breakdown to your business, refer to the UK Government’s Brexit Transition website.
Need help in accelerating your Brexit risk management process?
At Columbus, we pride ourselves on helping companies transform, maximise and futureproof their business. We’ve spent over 30 years dealing with manufacturing and distribution businesses to improve their connectivity, production quality and customer satisfaction.
It's not too late to build your Brexit risk dashboard. Contact us today to find out how our unique expertise can help support your business.