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How Will Brexit Affect My Supply Chain?

Terri Hiskey
Director, Product Marketing

In a historic vote last week, UK voters decided to leave the European Union. The implications of this decision are far reaching, and impacts everything from national security, immigration, the stock market and more. While the EU allows the UK up to 24 months to exit, smart supply chain professionals need to start thinking now about how this decision specifically affects their supply chains. APICS Director of Research, Jonathan Thatcher, wrote an informative blog post on this subject that points out three key areas that are greatly impacted by the Brexit vote:

  1. Supply chain planning: Many contracts were put into place presuming that the UK would be a full and active member of the EU. With the UK now planning to exit the EU, contracts will have to be revisited to determine if tariffs or trade barriers are to be put into place until such time that UK-specific free trade accords are passed.
  2. Supply chain flows and logistics: London is the center of global finance, and the Brexit vote presents immediate concerns about UK-related capital, currencies and costs. Some of the largest container ports and freight hubs are located in the UK. What will the Brexit vote mean in the future to import/export laws and how will that impact products moving through the UK?
  3. Supply chain relationships: Complexity in the supply chain has only continued to grow, and the uncertainty brought with Brexit vote could affect relationships and confidence and trust can suffer. The British pound is in flux, and there are long-term changes expected in landed costs, taxes and UK-specific regulations.

All global organizations need to analyze the impact of Brexit on their business. Smart supply chain professionals will use this time of uncertainty to not only formulate a response, but to turn this situation into a competitive benefit. How do you think Brexit will impact your supply chain?

Check out this full blog on the APICS site: "Brexit: What Does this Mean for Supply Chain Professionals?"

Learn more about Oracle Supply Chain Cloud solutions at www.oracle.com/scm.

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