PWP Industrial – Preparing for Brexit
Like many other UK companies, PWP Industrial has been following the Brexit negotiations with interest and evaluating the potential impact this may have on the ability to deliver goods and services to our customers.
As with all major changes outside our immediate area of control, what is thought to be the worst-case scenario (no-deal Brexit and therefore reverting to World Trade Organisation (WTO) rules) is being actively assessed and planned for.
The possible ‘no-deal Brexit’ is considered to have a potential impact on the free movement of goods, product compliance, contracts and financial planning. Additional ‘red tape’, customs checks and tariffs are also likely to result in increased costs on top of currency fluctuations that can push prices upwards.
Of all the possible threats, PWP Industrial considers the key area to focus on as being anything that negatively impacts our customer’s production and therefore profitability. Primarily, restricted or delayed delivery of products has been identified as a key danger and PWP has been working on a strategy to limit the risk.
PWP Industrial has a wide-ranging portfolio of suppliers ranging from manufacturers to importers and the risk has been scaled into the following categories;
|No Deal Brexit Disruption Risk: 1 = highest, 5 = lowest|
|Rating||Type of Supplier|
|1||European Based Supplier/stock only in EU|
|2||European Supplier with UK Stock|
|3||UK Supplier with European Manufacturers|
Plan of Action
We are in contact both with European and UK based suppliers relying on products brought in from Europe to evaluate their contingency plans and are happy to note most are already putting measures in place to minimise the potential impact.
In such cases where there is an element of doubt, PWP Industrial is actively looking at alternative suppliers, supply chains and products that will keep our customers supplied with products essential to their production needs. Where there is no alternative (e.g. brand specific products needed for WPS’s), PWP Industrial is looking to increase and maintain ‘buffer’ stocks at the Bedford warehouse.