BREXIT Finale Creates Another Challenge for Global Supply Chain Managers

The British prime minister’s Brexit deal was rejected by lawmakers yesterday, thereby sending the nation's preparations for leaving the European Union back to square one.

The impact on supply chain managers has yet be measured, but Gravity Supply Chain – an international SaaS company with offices in the UK – feels it will be significant.

“The ‘no-deal' outcome will mean no transition period which could result in limited transport permits and no agreement around aviation,” says Graham Parker, the company's CEO. “Businesses need to begin evaluating their existing supply chain models to prepare for potential logistical disruption.”

For retail businesses, in particular, this will undermine the effectiveness of their speed to market, and potentially trigger a negative impact on customer loyalty, Parker believes. He adds that enterprises need to safeguard themselves on two fronts – firstly by ensuring the cost of operation remains manageable and secondly by reducing the likelihood of supply chain disruption affecting the consumer.

“Real time visibility of the supply chain will be essential to achieving these goals,” he says. “Fact based decision-making, informed by a consistent feed of real time data from crucial touch points across the entire supply chain, will allow businesses to react quickly to supply chain disruption, allowing them to overcome the strategic challenges that may arise.”

Retail organizations are already facing major challenges, such as soaring rent, and changing customer expectations in the age of online retail, Parker observes.

“Many retailers have invested in technologies that have enabled them to innovate in the face of these hurdles, but a significant number are yet to undergo digitization in their supply chains,” he concludes.

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