BREXIT – Impact on your logistics strategy

Ruchi Dogra (CoFounder and Director, FreightCrate Technologies)

Ruchi Dogra
Is Brexit is one of many trends, from e-commerce to electric vehicles that could impact the logistics industry?

The UK leaving the EU is not an uncertainty anymore. Come March 2019 and the impact of the unknown will be on the business world around the world.

Brexit, unlike fads, is a reality that the businesses around the world have to face and prepare for. Whether you are
  • Exporting to UK – direct or indirectly
  • Doing multinational trade via the UK
  • Importing into the UK – directly or indirectly
  • Manufacturing & configuring for exports in the UK
In all the above cases, Brexit will impact your business operations – impacting both in terms of cost and in terms of timelines. Both of which can be an opportunity and threat depending on how a business is prepared to handle it.

While specific mechanics of how Brexit separation will work remain unclear – what certain is that there will be
  • Impact on the movement of labour across EU & UK impacting logistics workers
  • Regulatory issues will bring in new standards/norms – for both production, packaging, distribution
  • Potential trade tariffs that will impact the bottom line due to tax structures and duties
  • Challenges to the free movement of goods – along with demand and supply issues
Further, potential areas where we will see an impact are
  • Tariffs: on finished, raw materials or intermediate goods, based on what is negotiated between the EU and UK
  • Forex currency – any depreciation of pound due impact of Brexit will while on one hand create more opportunity for exports from the UK, on the other hand, import costs will go up
  • Supply chain delays – due to the imposition of new customs requirements and additional documentation will likely cause delays in clearances, additional labelling
  • Taxation – the UK could reduce corporate taxation to maintain and grow its share in trading activity; leading to enhanced logistics needs
Think about it, Ireland has long used the UK as a land bridge in its logistics chain to continental Europe, but if tariffs are imposed there may be an opportunity for short sea operators to introduce more direct services between Ireland and Europe.

These are just a few of the many significant challenges that supply chain professionals with businesses need to appreciate and understand. They need to begin work through potential scenarios and plan how they will save their positions and make most of the opportunities that the Brexit provides.

Even though answers to many of these questions are still unknown, it is important that businesses do not wait for concrete answers or policies, but begin to work through potential scenarios and plan their responses now.

What to do - change business practices, review business operations, analyses suppliers, renegotiate contracts or improve parts of supply chain activities. Business should
  1. Do a revive of their business supply chain and goals of future
  2. Get data – on all aspects of logistics in a standardized manner
  3. Assess and model scenarios – what are the likely impacts and how to manage them
  4. Cost-benefit assessment – do a risk assessment
  5. Run pilot projects and review the results
So, what are some further big ideas to balance the Brexit impact?
  • Faster Digitization – it’s time to implement internal, external and intracompany digitization and standardization of processes to bring in transparency, documentation handling, and price discovery.
  • Market platforms – multimode capability handling e-commerce platforms are the norm of the future. They provide an opportunity to both optimize on cost and find models for benefitting from the opportunities created by Brexit.
Talk to your new age logistics platform suppliers. Their consultants can help re-engineer your businesses supply chain networks to evaluate the effects of potential strategies during and post-Brexit. Businesses can find creative ways of reducing their liability and risks with a well-designed logistics strategy and reap the benefits of Brexit
Click Here
To Know More / Contact The Manufacturer
Please provide your details we will contact you as soon as possible
Please let us know your name.
Invalid Input
Please let us know your Designation.
Invalid Input
Please let us know your City.
Please let us know your State.
Please let us know your Country.
Please let us know your Contact Number.
Please let us know your email address.
Please brief your query.

International freight tech: moving from a ripple to a wave in 2019

International freight forwarding is slated to become the latest sector to undergo a rapid transformation through technological innovations due to the rise of digital start-ups that are attracting billions in funding Read More ...

CONCOR signs MoU with JSC RZD Logistics (RZDL) of Russia

CONCOR (Container Corporation of India Limited) a Navratna Company under the Ministry of Railways and RZD Logistics (RZDL), a Russian Railways Company, have agreed to jointly develop multimodal logistics services Read More ...

Procam overcomes arduous terrain with effortless scale-up to transport ODC cargo

Procam was assigned a project by a multinational Hydro Power Equipment manufacturer for their upcoming project at Chandrapuri in the hills of Uttarakhand, involving a very difficult and challenging terrain Read More ...

Tiger Logistics - Project Handling Specialist

Tiger Logistics (India) Limited is a leading 3PL company in the Indian logistics market, and the 9th Indian logistics company listed on the main board of Bombay Stock Exchange (BSE). The company has repeatedly Read More ...

Ready for Logistics 4.0 - DTCO digital tachograph from Continental

The new Tachograph Regulation (EU) 165/2014 takes effect in mid-2019. All newly registered trucks will then be required to have a smart on-board digital tachograph. And it will add numerous functional extensions Read More ...

Paradigm Shift in India’s Logistics Sector

The annual logistics spending in India accounts for 14% of India’s GDP, which amounts to $270-310 billion as India’s GDP is roughly $3 trillion. This is much higher than the 8-9% limit in USA, Europe etc. Almost 99% of this cost Read More ...

Goldhofer and Trail King team up to promote products in world markets

Goldhofer and Trail King Industries, two of the most respected brands in the heavy haul industry, are teaming up to promote and support each other’s products in the United States as well as around the world Read More ...

Road Trip for a Bridge

The long flatbed is empty at the moment, but the concentration is clearly etched in the truck driver's face. He's negotiating a 1,100-km route from the Canadian coastal town of Stewart right across the green mountains Read More ...

Shamolima Ltd is Goldhofer’s first customer in Bangladesh

Shamolima Ltd., headquartered in Dhaka, is the only national IMS certified heavy haulage company in Bangladesh, with strategically located offices in all major ports and airports throughout the country. Shamolima owns its Read More ...

How Blockchain is transforming the supply chain and logistics industry

While Blockchain is mostly associated with its debut role in the creation of crypto currency, the technology is a major disruptor, impacting several industries. With wide spread applications in sectors Read More ...

Technology, Automation & Robotics: Driving the Future of Industrial & Logistics Zones

Smart technologies have underscored the need for skilled labour, more policy changes and greater ease-of-doing-business in the country. It's estimated that supply chains will undergo huge metamorphosis Read More ...

FTWZs Transforming India’s Business Canvas

The Indian logistics industry is at the cusp of a significant transformation with strong structural changes that are expected to boost the economy and the country’s standing on the global platform. Domestic and Read More ...

TII India remain on course for success with TIIGER Extender vehicles

TIIGER Extender vehicles
In the Indian city of Bawal (near Delhi), production is running at full capacity, a year after the official opening - around 200 employees of TII India produce vehicles under the TIIGER brand, designed for Read More ...

More Efficient Transportation for New Wind Turbine Blades

More Efficient Transportation for New Wind Turbine Blades
Wind turbine manufacturers are setting up taller wind farms through erection of towers of hub heights ranging between 90 to 120 meters. Higher towers will mean speedier winds for producing more power Read More ...

Intermat Asean International Conference

The future of the construction industry looks to be characterized by technologies, full digitalization processes, intelligent machinery and equipment, software applications, automatic sensors, wireless technologies and etc. With suchtechnologies rapidly Read More ...

Goldhofer’s latest edition – STZ-VP (285) Semi Trailer – Easy. Extreme. Flexible.

The latest addition to the tried and tested STZ-VP family is very much a big boy. The STZ-VP (285) owes its name to the new 285 mm tires and takes the title for the low loader semitrailer with the highest Read More ...

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture

Lifting & Specialized Transport

Lifting & Specialized Transport

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week