1. Know your supply chains
The main disruption to businesses caused by a no-deal Brexit will be to their
supply chains when sourcing products and components from the EU,
especially when concerning perishable, defence-related, or other highly
regulated goods. While many business leaders in China may believe that their
supply chains will be unaffected or have been sufficiently adjusted, it's
important to make sure that your suppliers aren't also expecting elevated
costs in a no-deal Brexit scenario.
Supply chains are often more complex than managers initially realise, says
Michael Moore, Senior Brexit Advisor at PwC, who advises companies to
thoroughly map out every link in their supply chain to identify possible areas
of exposure and make sure this is carefully communicated to offices in all
locations. Potential risks might include delays at customs and double taxation
on any goods first coming into the UK from Europe, which would impact
businesses in China if their supply chains are implicated. Even if employees in
China fully understand their sources, it is important to pass this knowledge
back to the UK so that supply chains can be altered and business plans
adjusted to absorb any external costs. Finally, whatever the eventual
outcome, taking the time to reassess operations should be seen as an
opportunity to re-strategise, restructure and streamline supply chains, both
mitigating risk and optimising business performance, according to Tom
Rathborn, Brexit specialist at Grant Thornton.
BRITCHAM POLICY INSIGHTS| PAGE 2