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How to prepare for Brexit’s effects on supply chains Logo cgma

  Samantha White |   Free |   AICPA and CIMA |   03 Aug 2016 |   CGMA Magazine

This article discusses risks and opportunities including those associated with process, network and infrastructure, information flows, and organisational factors.

Topics covered:
  • Management accounting: Business: Strategy, Intermediate
  • Management accounting: Technical: Risk management & internal control: Risk identification & assessment, Intermediate

1 Comments/Reflections

Gabriella Straughan

Gabriella Straughan Dec 2018

A very interesting article on Brexit and how it would impact the supply-chain, written by Richard Wilding who is a professor of supply-chain strategy of Cranfield School of Management.

He feels that preparation is the key and though Brexit will inevitably cause disruption, as long as company's are prepared for it and assessed the exposure then should be able to have plans in place when the terms and conditions are finalised.

He pulled out 4 main areas of the supply-chain:

- Process:  adopt and modify processes.  There might be a need to have documents to be sent in advance, so Custom clearance process can start security checks prior to shipment of components or goods.

- Network and Infrastructure:  Due to tighter border controls and less predictable crossing company's might need to increase inventrory levels to accommodate longer lead times.

- Information flows: Automating function to reduce any manual intervention, so such as custom pre-notification mentioned under processes could be an automated function.

- Organisational:  Impact of Brexit on the supply-chain if European migrant labour is not available should be reviewed.

In summary if Brexit happens there will be a 2-3 years notice, which should allow companies to adopt and have contingencies in place.