The last few days/weeks have been turbulent in terms of Brexit related issues. As a result McClures and Parsons have been working hard behind the scenes with our supply network to try to ensure continuity of supply to you our customers with the UK set to leave the European Union on 31st October 2019.
The Buying Team have been busy assessing our supply chain in the event of the worst-case scenario and the outcome being a ‘No Deal’ Brexit.
Below are the steps that we have taken so far:
- We have contacted all our suppliers to ascertain what provision they have taken to ensure a smooth transition through this difficult period and assess how that will impact on our supply chain to customers.
- We have various plans in place including increased forward purchasing and where applicable increased production plan forecasts tied in with storage capacity plan increases.
- In the event of a ‘No Deal’ Brexit we are assessing the impact on tariffs on our volume lines and what if anything we can do to reduce this impact as much as possible. The complication is that many contracts that have been negotiated in the past 12 months have Brexit clauses which means that costs may vary in the outcome of a ‘No Deal’ Brexit.
- We have been assessing the country of origin of our products and will look to switch to UK manufactured products if they are of comparable quality and are commercially viable and thus are building these relationships currently.
- Fruit and vegetables gives us more of a challenge as the UK now relies so much on Europe for so many “Unseasonal” products – tomatoes, peppers, broccoli, cauliflowers, berries – to name but a few. As a result we have been working closely with all our fruit and vegetable suppliers and they are confident of delivery and documentation solutions provided out of Europe when 1st of November arrives in whatever form.
- We have had, since February, our HMRC authorised EORI number – this is a requirement to enable receipt for any stock from UK suppliers who have sourced product themselves from an EU country.
It is extremely hard to know what the outcome will be over the coming days/weeks but please be assured we are continually monitoring the situation and are acting accordingly to ensure as much as practically possible the maintenance of our normal customer service levels we have delivered over the years in these uncertain times.
We will keep you updated as the situation changes over the coming days and weeks.
W McClure Ltd