Since 2017, CIPS (Chartered Institute of Procurement & Supply) has been conducting a series of surveys among UK and EU supply chain and procurement managers. These findings offer an insight in how professionals view the upcoming departere of the United Kingdom. For a detailed look into the results, be sure to read The Brexit Storm: All the results from the CIPS Brexit surveys. Here however we will list CIPS’ six points in which procurement can help you prepare for the UK’s inevitable leave.
1. Audit your supply chain from end to end
Dig deeper into your supply chain to find any hidden European suppliers. Not just auditing supply chains, and tiers, but where there are strategic categories or strategic suppliers. Some products or services might have been subcontracted to a European-based organisation.
2. Reassure and communicate continuously
With supply chains in the spotlight, organisations will be looking to procurement to lead. CIPS calls upon professionals to take the trusted advisor’s role, listening to concerns, reassuring business that supply chains are robust and protected.
3. Prioritisation and risk analysis
Identifying potential problem areas and prioritising them is key. Take a proportioned, segmented, risk-based approach.
4. Contract review – current and planned
Be on top of all your contracts so that when Brexit arrives, your organisation is not hit with any surprises. Review all contracts and understand which legal jurisdictions those contracts operate in and what currency.
5. Research Issues
Broadly take into account legislation and trade issues that might affect the supply chain and come up with
contingency plans to tackle them. Watch the news and Brexit negotiation developments
6. Work cross-functionally
Most organisations and departments are going through similar uncertainty, so it would be beneficial to all parties to share knowledge on how to minimise disruption.
Read the entire report and stay on top of the latest developments on Brexit by visiting the CIPS-website.
Source: CIPS, 2019 Report link: https://www.cips.org/Documents/CIPS_Full_Brexit_Report_August_2019.pdf