Skip to content
ANNOUNCEMENT: Resilinc Announces Strategic Growth Investment from Vista Equity Partners Read More
Resilic Logo
  • Solutions
        • Solutions

          • EventWatchAI
          • RiskShield
          • Multi-Tier Mapping
          • CommodityWatchAI
          • Supplier Assessment Library
        • Data Marketplace

          • Autonomous AI Mapping
          • Resilinc Disruption Vulnerability Index
          • R Score
          • Supplier Screening
          • Application Programming Interface (API)
        • Services

          • Advisory Services
          • Data and Intelligence Services
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Use Cases
        • By Industry

          • Aerospace, Defense, Government
          • Automotive and Industrial
          • Healthcare & Life Sciences
          • High-Tech & Semiconductor
        • By Role

          • Supply Chain Risk & Resiliency Program Managers
        • By Business Need

          • Business Continuity Planning
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Resources
        • Learning Center

          • Blog
          • Case Studies
          • Event
          • On Demand Webinars
          • White Paper & Reports
        • Connect

          • Schedule Demo
          • Request Pricing
        • Special Reports

        • Special Report
        • Find valuable resources for managing supply chain disruptions in our Special Reports section.

        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Company
          • Who We Are
          • Partners
          • Careers
          • Resilinc In the News
          • Press Releases
          • Global Supply Chain Resiliency Council (GSCRC)
          • Healthcare Transparency Initiative (HTI)
          • The Risk Game
        • Elevate your Supply Chain Risk and Resiliency Program

          Schedule Demo
  • Pricing
  • Contact
Login
ANNOUNCEMENT: Resilinc Announces Strategic Growth Investment from Vista Equity Partners Read More
Resilic Logo
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • Who We Are
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • Global Supply Chain Resiliency Council (GSCRC)
    • Healthcare Transparency Initiative (HTI)
    • The Risk Game
  • Pricing
  • Contact
  • Login
Menu
  • Solutions
    • Solutions
      • EventWatchAI
      • RiskShield
      • Multi-Tier Mapping
      • CommodityWatchAI
      • Supplier Assessment Library
    • Data Marketplace
      • Autonomous AI Mapping
      • Resilinc Disruption Vulnerability Index
      • R Score
      • Supplier Screening
      • Application Programming Interface (API)
    • Services
      • Advisory Services
      • Data and Intelligence Services
  • Use Cases
    • By Industry
      • Aerospace, Defense, Government
      • Automotive & Industrial
      • Healthcare & Life Sciences
      • High-Tech & Semiconductor
    • By Role
      • Supply Chain Risk & Resiliency Program Managers
    • By Business Need
      • Business Continuity Planning
  • Resources
    • Learning Center
      • Blog
      • Case Studies
      • Events
      • On Demand Webinars
      • White Papers & Reports
    • Connect
      • Schedule Demo
      • Request Pricing
    • Special Reports
  • Company
    • Who We Are
    • Partners
    • Careers
    • Resilinc In the News
    • Press Releases
    • Global Supply Chain Resiliency Council (GSCRC)
    • Healthcare Transparency Initiative (HTI)
    • The Risk Game
  • Pricing
  • Contact
  • Login
  • Solutions
    • EventWatchAI
    • RiskShield
      • Supplier Assessment Library
      • Business Continuity Planning
    • Multi-Tier Mapping
      • Resilinc Supplier Network
    • Autonomous AI Mapping
    • CommodityWatchAI
    • Data Products and Offerings
    • Supply Chain Risk and Resiliency
      • Advisory Services
      • Data and Intelligence Services
  • Industry
    • Aerospace and Defense
    • Automotive & Industrial
    • Healthcare & Life Sciences
    • High-Tech & Semiconductor
  • Pricing
  • Resources
    • Learning Center
    • Special Reports
    • Events
    • Developer API
  • Company
    • About
    • Partners
    • News
  • Contact
  • Blog
  • Careers
  • Demo
  • Login
  • Customer Hub

Home / Blogs / Brexit: Tiers of Uncertainty

Brexit: Tiers of Uncertainty

Brexit: Tiers of Uncertainty

Apr 22, 2019

Sahil Kothadia

Automotive, Conflict mineral derivatives

Download the full 2018 annual report here

The only certainty with Brexit is uncertainty. As this report was being finalized, Great Britain and the European Union had not reached a trade agreement ahead of the March 29 Brexit deadline. This meant that every company importing or exporting across UK/EU borders was facing possible new tariffs as high as 4.5%—multiplied by two or three for products that cross borders multiple times.

Even more damaging than tariffs could be delays at the border crossings. According to an analysis by Dr. Ke Han of Imperial College London’s Center for Transport Studies, shared on a Resilinc webinar in 2018, queues of trucks as long as 30 miles could materialize at Britain’s two busiest ports of entry, the Eurotunnel and Port of Dover. With 30% of Britain’s food entering through these two ports, delays would result in significant losses of perishable goods.

The Automotive Industry would be particularly hard hit by a “no-deal” Brexit. Delays like those described above would disrupt the “just-in-sequence” inventory practices used by some UK automakers—practice even more finely tuned than just-in-time procedures.

With gross profit margins of between 5% and 10%, automakers’ margins would be significantly eroded by tariffs—especially for parts that cross the UK borders more than once, a common scenario, especially between the UK, Germany, the Netherlands, France, Belgium and Luxembourg (see chart below).

Additionally, many automakers rely on a large percentage of small- to medium-sized enterprises (SME) sub-suppliers. For Automotive and Aerospace, SMEs represent 60% to 70% of the supplier base, according to Dr. Han. And by virtue of their smaller size they are less prepared for Brexit than larger enterprises. Indeed, many have never traded outside the EU.

By the end of March 2019, much more will be clear about the actual costs and burdens of managing supply chains in a post-Brexit world. The most well prepared for the variety of possible outcomes will likely be companies that have engaged in comprehensive analyses of their supply chain vulnerabilities through all tiers—including best-case and worst-case scenario planning and evaluation of the costs and time required to switch sourcing to non-UK suppliers.

Along with its challenges, Brexit presents a unique opportunity for supply chain professionals to underscore with senior management—who are already concerned about Brexit—the value of continuous supply chain improvement.

The UK’s largest trading partners

Total trade ( goods and services ), 2015, £bn

Screen Shot 2019-04-22 at 10.46.01 AM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brexit impacts you may not have considered:

• Potential impacts of varying regulations and like REACH some suppliers may not support UK market

• Access to people with appropriate skills: UK loss of talent

• Data protection islands

• Distribution changes and contingencies

• Financial stress on SME suppliers within your supply chain

• Transparency and counterfeit good

Resilinc Annual Report 2022 - Turbulence

White Paper

Cutting-edge Insights from Resilinc's Annual Report 2022

Be Prepared with the Latest Trends and Exclusive EventWatchAI Data to Step Up Your SCRM

Download Now

Recent Posts

Critical Cancer Drugs, Other Life-Saving Medications Face Severe Shortages

Forced Labor in the Automotive Supply Chain: What Car Companies Can Do

4 Crucial Commodities to Watch in 2023

CHIPS Update: New Vision for a National Semiconductor Technology Center

Which Industries Have Been Impacted by UFLPA?

5 Ways to Mitigate ESG Risks in Your Supply Chain

Resilinc’s Q1 2023 Supply Chain Disruption Data

Introducing EventWatchAI 5.0: 100M New Sources, Near Real-Time Reporting

About Resilinc

We’re the world’s leading supply chain monitoring, mapping, and resiliency solution. Over 100k organizations partner with us to take their SCRM programs from reactive to resilient.
Request Demo

Recent Blogs

Loading...
Cancer Drug Shortages in the US
May 30, 2023
4 MIN READ
Resilinc Editorial Team

Critical Cancer Drugs, Other Life-Sav...

Cancer drugs have once again become one of the top five drugs in short supply....
Healthcare, Human Health, Supply Chain Disruptions
Forced Labor in the Automotive Supply Chain: What Car Companies Can Do
May 23, 2023
5 MIN READ
Resilinc Editorial Team

Forced Labor in the Automotive Supply...

Believe it or not, the car you’re driving around likely has parts made with forced...
Automotive, Automotive Industry
A cobalt quarry with dust clearing.
May 16, 2023
5 MIN READ
Resilinc Editorial Team

4 Crucial Commodities to Watch in 2023

Your business likely relies on raw materials experiencing significant price fluctuations or shortages. Many industries...
Commodity management, Rare earth minerals
Read All Blogs

Who's in your supply chain?

Better visibility starts now

Email Now|Call Now|Chat Now

Receive our monthly NewsWatch digest

Subscribe
Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Solutions

Blog

Careers

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

Resilinc Transparent Logo

Most Trusted, Cognitive Supply Chain Risk Management Platform

Company

  • About
  • News
  • Events
  • About
  • News
  • Events

Resources

  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • White Papers & Reports
  • Case Studies
  • On-Demand Webinars
  • Solutions
  • Blog
  • Careers
  • Solutions
  • Blog
  • Careers

Follows Us

Facebook-f Twitter Linkedin

Sales: [email protected]
Support: [email protected]
Partnerships: [email protected]

© 2023 Resilinc Corporation. All rights reserved.

Data Security

Privacy Policy

Unlock the Secrets of Building a World-Class Supply Chain Resiliency Program

Discover Best Practices and Proven Strategies with Our 2023 Ultimate Guide to SCRM

           Download Guide