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How Will a No Deal Brexit Affect Just In Time Logistics?

The Brexit negotiations have taken more twists and turns than anyone could have imagined when the vote to leave the EU was announced back in 2016. With deals going nowhere and extensions to talks, it’s given business leaders even more time to think about how Brexit will affect their industry.

We’re already seeing the more obvious effects of leaving the EU – customs workers striking this month over the lack of clarity have led to miles and miles of queues at Calais for professional drivers. A simple act such as this has wide-reaching consequences – drivers will not only be frustrated, but their health is put at risk as they remain in the cab unable to move in traffic queues and longer hours are spent on the road. Playing the blame game is all too easy but, ultimately, futile – strikers take such a stand only because of serious concerns for their workplace.

These strikes give a taste of what may be to come in the long term: should No Deal become a reality, drivers will doubtless face long queues when leaving or re-entering the country. But as well as the toll this will take on drivers’ hours, physical and mental health, it will also have an effect on businesses. And Just In Time logistics will be an industry which will be hugely altered should no deal be agreed between Britain and the EU.

Just In Time relies on the efficiency of forward planning to ensure a smooth logistics operation, with new stock transported when levels are low but not depleted. If this month’s queues at Calais are any indicator of what a No Deal Brexit might look like, it would be understandable for business owners to be concerned that delays at borders could lead to a break down in the Just In Time system.

However, at Barnes Logistics we believe that there really is no need for panic. As well as being utterly counter-productive, the fact remains that the majority of businesses have been planning for this eventuality for years. By analysing customer spending habits, we have seen businesses across a whole variety of industries strategically stockpile and more effectively manage key goods.

Although delays at borders may lead to longer delivery times, this is a simple reality which both businesses and customers must face and embrace. If goods have been stockpiled, businesses have safeguarded their ability to make products and sales – with the only net affect being that businesses may have to wait a little longer than previously for their goods to arrive. As long as there is clear communication between both parties, both can plan and prepare accordingly.

At the end of the day, Just In Time relies on thoughtful forward planning to ensure maximum efficiency – and this will remain the key to its success whatever the outcome of Brexit.

Storage Before Brexit: Secure The Future

It may be a topic, and indeed a word, which the majority of the country are sick to death of hearing; but this week Brexit has been grabbing more and more headlines as Theresa May tries hard to push her deal for leaving the European Union through Parliament. With the realities of our country’s future being brought into focus, we look at how businesses across the country can protect themselves against the uncertainty that 2019 will bring.

 

As the deal focuses on the divorce terms and the Northern Irish border – issues which, of course, affect businesses of all industries – but what all business owners and decision makers are lacking, is future trade agreements. Issues regarding who we will trade with, and at what tariff costs, is an issue which we will not see a resolution to in the near future.

 

Therefore, in the meantime, businesses can look to protect themselves by stockpiling goods. When the future of trading is so uncertain, having a surplus of stock is not the nightmare scenario it would usually be under normal circumstances. Making the investment in more goods now before the potential increase in importation charges after Brexit will ensure that businesses carry a known cost in this time of uncertainty.

 

In the past few years, we have invested in the latest warehousing technology, including our own in-house stock management system, in our secure 50,000 sq ft of storage space in Rochdale. Offering bespoke warehousing for all businesses, from technology to clothing to ambient food and beverage, we’re able to accommodate your warehousing needs no matter your stock size or length of storage needed. Less than 10 miles from Manchester, we’re located with easy access to the M62 for a quick connection to the UK’s roads and ports.

 

No matter the size of the business or the industry you trade in, it has never been more prudent to safeguard against the trading uncertainty looming in the near future of our country. If you’d like to learn more about how we can easily, safely and securely store your stock for Brexit, get in touch with our team of experts today.

Brexit: Two Years On, One To Go

Ever since the country voted to leave the European Union back in 2017, discussions on the topic has been unsurprisingly pessimistic. With less than a year to go until the big day – 29th March 2019 – in recent days logistics industry bodies have been voicing even more concerns about the Government’s ability to deliver a coherent exit plan.

According to a recent Financial Times report, the sector has ‘lost patience’ with Whitehall, with all from national logistics representatives to individual lorry drivers presenting their dismay at the Government’s lack of action, claiming it is now too late for a frictionless exit from the EU.

Of course, all industries are bracing themselves for the effect that Brexit will have on business – but few will feel the effects as close as ours. Financial services and international businesses will worry about levies and trade, but the logistics industry is the sector which will face physical barriers at borders and as we attempt to run our businesses.

In a previous blog, we highlighted an astonishing figure highlighted by the FTA: that over 90% of all the public eats, drinks, wears and purchases has, at some point, travelled on a HGV. For something which affects such a huge part of everyday life and UK enterprise, surely this should have been made a priority? What is most worrying is reports of the progression of the FTA’s private meetings with the Government: out of the their 8 proposals to keep Britain trading smoothly, none have been implanted yet.

As well as border problems for trade, there is also the issue of EU nationals working in the industry which has, again, yet to be addressed. The driving industry is already facing a serious shortage, with less young people entering the profession and the current drivers facing their well-earned retirement. It is no understatement to say that the industry relies on dedicated workers who come from Europe to fill the skills gap. Until the Government does more to boost and train young people into driving, it would seem that the industry would be taking a double hit if we do address the issue of our need for European workers.

The clock is ticking on the Brexit clock… When will the country’s leaders realise the importance of prioritising logistics?