Avoiding post-Brexit import problems

George Mooney, an Audit Associate in our Worcester office, looks at options for importers looking to avoid supply chain issues.

Since 1 January 2022, the Goods Vehicle Movement Service (GVMS), the UK Government’s IT platform for moving goods in and out of Northern Ireland and Great Britain, has seen increased lorry delays at Calais due to new post-Brexit paperwork requirements. 

As well as increased lead times on imports, political and economic uncertainty (due to the war in Ukraine) has interrupted UK manufacturers’ imports, with exchange rates fluctuating and supply chain issues where raw materials are imported from Russia, Ukraine, or other bordering countries. 

With post-Covid-19 economic recovery underway in the UK, timeliness, efficiency, and cost-effectiveness are now as vital as they were during the pandemic, so that manufacturers can import, manufacture, and sell goods and be a part of the economic rejuvenation.

In order to be at the forefront of the post-pandemic growth, lead times and cost control need to be managed proactively, so that your goods can come in and go out the door for the best price, in the best time. 

Quick tips

Whereas you may not be able to avoid the customs delays for lorries and ships from the EU with your raw materials on them, here are some quick tips to consider on how you could potentially decrease lead times and keep control of your costs:

• Assess your import companies. Rather than the 60-day grace period for import paperwork, imports must now arrive at the UK border with all required paperwork to allow straightforward entry. To reduce lead times as much as possible, being sure that your importers are following these protocols by requesting details of their internal controls is a vital step of ensuring efficiency in your supply chain.
• Invest time in detailed plans and forecasts. Understanding your future with extensive planning and cost stress tests can give you awareness of sensitivities, as well as a good foundation against which goals can be set.
• Make use of foreign exchange rate contracts. As part of plans and forecasts, foreign exchange rate contracts can give you stability in a time of fluctuations due to external factors. Holding these contracts to use upon purchasing in foreign currency may mean realising exchange rate gains or losses. However, the stability of knowing the rate your transactions will be at allows stable planning and cost management.
• Consider other locations to source raw materials. If you currently source raw materials from the EU, it may be worth assessing other distribution routes, especially if the materials can be sourced from countries that the UK has struck post-Brexit free trade deals with.

If you would like to discuss how you can make your supply chain more resilient, please contact a member of our Manufacturing team.

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