This week has been all about Brexit in the Odesma office. We have been assessing, analysing and reviewing the impact of Brexit for us and the procurement sector. It all began with an update…..
At the end of March Teresa May is expected to notify, under Article 50 of the treaty on European Union, the United Kingdom’s intention to withdraw from the EU. This will then give us until 1st April 2019 to seek new trade deals and abolish or amend existing laws as we see fit. If this cannot be agreed they will opt for no deal. All sounds pretty straight forward!
What does that mean for businesses and in particular procurement? Well no one really knows. What we can do is prepare as best as we can to ensure we try and safeguard our businesses from Brexit.
A recent survey showed that one in four senior procurement practitioners expected Brexit to heighten the status of procurement within their organisations which is great news for procurement it is the time for them to stand up and prove their worth in a business.
Odesma have been taking their lead from an old time favourite the PESTEL model. This business model framework maps out the political, economical, social, technological, environmental and legal factors that can affect a business in the current market. From this framework, procurement can develop strategies that can develop more flexible supply chains which can be more risk averse and value driven.
Additional strategies could be implemented to manage the fluctuations in the exchange rate or considering trade agreements for suppliers in EU/ non EU countries.
So even though we are not entirely sure what will happen over the next few years we can be sure that Brexit is happening and we need to prepare for it. Use the PESTEL model to identify areas which can be at risk from the Brexit and adjust your strategies accordingly. What are you doing to prepare for Brexit?