Brexit – is Procurement Prepared?
The future impact of Brexit may not be clear, but Procurement should not wait. At ProcureCon IT in Amsterdam this week, delegates met with Graham Crawshaw, CASME’s Services Director, who led a RoundTable during which the various options for preparation, immediate concerns and potential actions for Procurement to add value were discussed.
Delegates agreed that the top three immediate concerns are:
- Delays through customs administration, causing bottlenecks to the movement of goods in and out of the UK
- Stock shortages that require a buffer; two-months stock is the industry standard being adopted
- Price increases ranging from 3% to 5%. Procurement can respond by adjusting budgets and ensuring transparency of contracts to prevent suppliers using Brexit as an excuse to inflate prices.
How can Procurement add value?
Don’t panic, consider whether these top three options will work for your business:
- Talk with your stakeholders and suppliers – agreed the best actions to prepare for the unknown. Simply engaging in discussions will help when the time comes to make decisions
- Understand your supply chain – CASME’s own benchmarking found that less than 15% of organisations really understand their supply chain, and 40% are looking to switch suppliers to eliminate potential issues. Procurement should review contract exit clauses
- Do nothing – despite this being considered as a very high-risk option.
For more information on CASME's Brexit SnapShot Survey contact our team.