British procurement professionals prepare for no deal Brexit


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Procurement professionals across the UK are preparing for the prospect of a “no deal” Brexit in March 2019, reports.

The development follows Brussels’ rejection of British Prime Minister Theresa May’s proposals for continued access to the European market after formal withdrawal from the EU. The ensuing uncertainty has prompted many procurement teams in both public and private sectors to begin preparing for the real possibility that no deal will be in place by the fast-approaching deadline.

According to the public-sector ICT news site Government Computing, the Government has announced a new, free-of-charge UK-specific eNotification service to replace the existing arrangement. Currently, procurement opportunities within the scope of European Union directives are advertised via Tender Electronic Daily (TED) in the Official Journal of the European Union (OJEU). Those that don’t fall within the scope of EU procurement directives are advertised on British portals such as Sell2Wales, eTendersNI, Public Contracts Scotland and Contracts Finder.

In the private sector, while many procurement functions will be affected by Brexit, from strategic sourcing to tail spend management and opportunity assessment, supply relationship management will possibly feel the most significant impacts. The Grocer reports that many major food and beverage companies have already started stockpiling supplies to lessen the impact of key ports potentially opting to stop operating if no deal is reached before the March 2019 deadline.

Confectionary leviathan Mondelez has already announced that it is preparing for “the worst case scenario” by shipping in ingredients. An additional four major retailers have revealed that they have made “safety stock” preparations by stockpiling up to five days-worth of additional goods (one is planning for ten days-worth of additional products).

A logistics source commented, “For raw materials, there is the assumption that suppliers to the manufacturers will hold higher levels of stock, reducing the burden on the manufacturers’ warehouses, in the same way that retailers will almost certainly expect their suppliers to hold higher levels of stock (at no cost to them).”

Ed Cross

Ed founded Odesma in 2014 with the explicit intent of creating a new kind of procurement consultancy founded entirely on cloud principles. Deploying best-of-breed subject matter experts alongside the best on demand technology to deliver rapid and effective change for customers.

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