Plan Ahead For Brexit

Plan Ahead For Brexit

October 29, 2018

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.

Discussion Questions:

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 Continue reading

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Hard Brexit May Stop Toyota Production

Hard Brexit May Stop Toyota Production

October 25, 2018

Toyota’s just-in-time production stands at risk with the looming “hard Brexit” in March 2019.

Last year, the Burnaston plant in the U.K. made nearly 150,000 cars, and 90 percent were sent to EU nations.  Normally parts are delivered every 37 minutes but if these parts are held up in Customs in Dover and Calais when Brexit kicks in, production could stop for hours or even months.

Other auto makers express similar concerns and are developing alternatives and contingency plans.


Video Spotlight: Toyota Europe CEO: We face logistics problems in case of hard Brexit


This post is based on The Bloomberg article, Carmakers in Paris Issue Stark Warning on Risk of No-Deal Brexit, by Oliver Sachgua, Elisabeth Behrmann, and Tara Patel, October 2, 2018; and The Newswheel article, Toyota warns “No-Deal” Brexit would lead to unprecedented production stalls, by the editor, September 29, 2018; and the YouTube video, Toyota Europe CEO: We face logistics problems in case of hard Brexit | Squawk Box Europe by CNBC Life, October 2, 2018. Image source: Shutterstock / nito.

Discussion Question:

1. Why is a just-in-time system more at risk with a hard Brexit than a traditional batch-push Continue reading

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