IN THE WAKE OF BREXIT, A THIRD OF RETAIL ESTABLISHMENTS ARE CONSIDERING SWITCHING SUPPLIERS.

Following the recent vote for the United Kingdom to leave the European Union, a survey that was recently conducted by Barclays revealed that almost one third of retailers in the United Kingdom are considering switching suppliers. In addition, 28 percent of retailers are also giving some thought to sourcing from different countries. The report offers a fascinating glimpse into the perspectives of retailers regarding the management of their supply chains in the wake of the historic decision made by the voters in the UK. Approximately 32 percent of respondents also stated that they anticipated sourcing more from the UK as a direct result of the decision. In the meanwhile, more than half of the companies that were questioned projected that they would purchase more from china, while 43 percent anticipated that they would buy more from India. 38% of respondents said that they would be sourcing more from africa, while 45% predicted a decline in the amount that they bought from Europe. “the image is complicated” The poll also investigated the broader sentiments of retailers on brexit and found that fifty percent of them did not feel prepared for the United Kingdom’s exit from the European Union (EU). Despite this, 44% of respondents projected that Brexit would have a negative impact on their supply chain, while 41% believed that it would have “no meaningful effect.” A little under sixty percent of respondents anticipated that the costs of supply chain management would either stay the same or slightly rise as a result of Brexit. In comparison, just fifteen percent of respondents believed that there would be a decrease in costs as a result of the event. According to ian gilmartin, head of retail and wholesale at barclays, “getting your supply chain strategy right might be the key to success for retailers.” The results of our post-Brexit poll paint a complicated picture, but there are some positive takeaways to be found in there. Despite the fact that retailers are not overly pessimistic about the impact the vote will have on their supply chains, they are still giving careful consideration to what they need to do now, in particular with regard to which regions they source from and their strategy regarding foreign exchange. This is an important indicator of how retailers feel about the impact the vote will have. The findings of this survey are certainly insightful in that they show the clear intention of uk retailers to examine the scope for change to their supply chains and to increase the activity of domestic supply chain consultants, rather than passing on any brexit-induced increase in costs to consumers. Make sure that your company is adequately prepared for the impact that the impending departure of the United Kingdom from the European Union will have on its supply chain by getting in touch with bis henderson consulting as soon as possible to learn more about how we can assist with new solutions and process improvements in support.