Brexit & Supply Chain Logistics in Ireland
Brexit & Supply Chain Management – a logisticians view
As a logistics solutions provider, serving Ireland, the UK and mainland Europe, we at CMLS are keenly following developments in Brexit negotiations and their implications for supply chain management. We have also listened to our clients’ concerns and are eager to allay any fears that may be unfounded at present. This article is not an attempt to scaremonger. However, it is suggesting that there are possible wide-reaching changes around the corner and we all need to be reviewing what we do and how we do it. If you have not considered what these potential changes could be, read on.
What is going to happen?
Well at the time of publication will still do not know. One thing we can be sure of is that it will mean changes in the supply chain. If you are exporting your products or importing raw materials or goods, the departure of the UK from the EEC will have an effect on your business. Even if the EEC and the UK collectively decide to kick this can down the road, changes will occur as businesses will try and mitigate against any uncertainty.
The implications could be far-reaching: as supply chains are re-engineered to manage the change, vehicles that are available for return collections from the UK currently might not be available in the future or will be empty in a different geographical location. If movements from continental Europe stop using Britain as a land bridge to Ireland then this could create a volume imbalance on vehicle movements across the Irish sea. Too many empty vehicles in either direction increases costs and lead times as hauliers are forced to wait for return loads. Companies who previously delivered product to the Irish market from the UK may now consider the option of holding stock in Ireland and servicing the market directly. Then there is the customs formalities, admin and paperwork!
Are you ready for change?
Are you reviewing your current route to market, your strategic stockholding points and inventory levels? The temperature conditioning of your products? Do you know what your options are? The movement of foreign exchange between GBP and the Euro has already caused changes within the chain and there more to come. If there are significant changes to customs practices or established supply routes, then your current supply chain may no longer be optimal and should be reviewed.
CMLS is here to help
CMLS has been actively researching the implications of Brexit over the last twelve months. We have been looking at how our services may need to adapt to the coming changes. We have invested in changing warehouse configurations to meet changes in demand and dwell time. Our transport fleet is undergoing changes in terms of trailer types and deployment. Brexit should not be underestimated and we are now well-positioned to meet the challenges that will come.
CMLS is 100% Irish owned company and we provide international and domestic transport, warehousing and many added value logistical services right across the Island of Ireland and beyond. All of our services can handle products at chilled, frozen and ambient temperatures. Our warehousing and distribution services are all accredited to BRC standards and empowered by the latest technology to ensure the sure seamless flow of information through IT integration with our customers and suppliers. Some of Ireland and the UK’s top brands trust CMLS’s wide range of services.