Brexit has brought about a huge number of changes and obstacles our retail sector is having to overcome on a daily basis. Whether you run a shop on the high street or sell products online, the way goods move from suppliers to your customers has become more complex. This article looks at some of the ongoing challenges Brexit presents for your supply chain and, more importantly, what you can do to make it stronger.For both physical shops and online stores, getting products reliably and at a good price is crucial but Brexit has made this harder. Let’s break down some of the main issues:
More Red Tape: One of the most significant changes is the increased paperwork required for importing and exporting goods. This includes customs declarations, tariffs (taxes on imports), and new regulations on product standards. For a shop owner bringing in stock from Europe, this means more forms to fill out and potentially extra costs. For an online business sourcing globally, understanding these new rules for each country you deal with is essential.
Border Delays: The extra checks and paperwork can lead to delays at borders. Lorries carrying goods might face longer queues, and this can disrupt delivery schedules. For a physical store waiting for a new shipment of stock, delays can mean empty shelves and lost sales. For an online retailer promising next-day delivery, border delays can lead to unhappy customers and a damaged reputation.
Changing Regulations: Product standards and regulations can also differ between the UK and the EU, which was previously a unified market. This means businesses might need to ensure their products meet different sets of rules depending on where they are being sold or sourced from. Keeping up with these changes can be a real headache for both brick-and-mortar and online sellers.
Labour Shortages: Some sectors involved in the supply chain, like haulage and warehousing, have experienced labour shortages since Brexit. This can impact the speed and cost of moving goods around, affecting both the delivery of stock to physical stores and the fulfilment of online orders.
Currency Fluctuations: The value of the British pound can fluctuate against other currencies, particularly the Euro. This can impact the cost of imported goods, making it harder for businesses to predict their expenses and set prices, whether they are selling in a physical shop or online.
So, what can businesses do to build a more resilient supply chain in this new landscape?
Here are some strategies that apply to both physical and online retailers:
Know Your Suppliers Inside Out: It’s more important than ever to have a good understanding of where your products come from and how they get to you. Talk to your suppliers, understand their processes, and identify any potential risks in their own supply chains.
Diversify Your Sourcing: Relying too heavily on suppliers from one region can be risky. Consider finding alternative suppliers in different parts of the UK or even other countries to reduce your dependence on a single source that might be affected by border issues or regulatory changes.
Build Strong Relationships with Logistics Partners: Whether you’re shipping goods to your store or directly to customers, having reliable and knowledgeable logistics partners is crucial. They can help you navigate the complexities of customs procedures and find the most efficient routes.
Increase Your Inventory Levels (Cautiously): Holding a bit more stock than you usually would can act as a buffer against potential delays. However, be careful not to overstock, as this can tie up capital and lead to storage costs.
Invest in Technology: There are various software solutions that can help you manage your supply chain more effectively. These tools can assist with tracking shipments, managing inventory, and even automating some of the customs documentation.
Stay Informed: Keep up to date with the latest changes in regulations and trade agreements. Government websites and industry bodies can provide valuable information. Understanding potential future changes will allow you to prepare proactively.
Collaborate with Other Businesses: Talk to other retailers and businesses facing similar challenges. Sharing experiences and best practices can be incredibly helpful. You might even find opportunities for collaboration on logistics or sourcing.
Review Your Pricing Strategy: The increased costs associated with importing and exporting might mean you need to review your pricing to maintain profitability, whether you are selling in a physical store or online. Be transparent with your customers about any price adjustments due to these factors.
Navigating the post-Brexit landscape requires adaptability and careful planning. By understanding the challenges and implementing proactive strategies, both physical and online retailers in the UK can build more resilient supply chains, ensuring these continue to serve their customers effectively. It’s about being informed, being prepared and building strong partnerships to keep the flow of goods moving smoothly.
If you’re concerned about any of the points raised in this article and you would like to discuss how we can support you, contact us for a friendly and informal chat.