Brexit poses multiple challenges to supply chain management. These challenges include changes to customs and tariffs, legal implications regarding contracts and intellectual property, lead times, and contractual incentives.
Firms that plan ahead with a variety of scenarios in mind stand the best chance of gaining first mover advantages as the new supply chains are put into place in the next six months.
This post is based on the Supply Chain Digital article, How can businesses prepare their supply chains for Brexit?, by Marcus Lawrence, October 11, 2018. Image source: Shutterstock / worradirek.
1. How can firms subjected to Brexit in the United Kingdom maintain short lead times for imported inventory?
Guidance: Students should search the internet for articles about Brexit and the potential issues with imports/exports. Students could then brainstorm in a class discussion about ways to maintain short lead times. The discussion may include the idea of maintaining larger inventories in the UK or EU to overcome the delays caused by Brexit.
1. Will an efficient or a responsive supply chain potentially be impacted the worst in Brexit? Why?
Guidance: Review responsive and efficient supply chains. Students should have a challenge to defend their point of view. Efficient supply chains will incur higher costs potentially under Brexit while responsive supply chains will likely suffer from slower lead times. The instructor could then ask the students “which supply chain is most likely to resume at pre-Brexit performance levels first, and how?”.