Brexit – Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Thu, 20 Jun 2019 08:46:39 +0000 en-GB hourly 1 https://wordpress.org/?v=5.2.2 Brexit is top cause of supply chain disruption https://www.logisticsmanager.com/brexit-is-top-cause-of-supply-chain-disruption/ https://www.logisticsmanager.com/brexit-is-top-cause-of-supply-chain-disruption/#respond Thu, 20 Jun 2019 08:46:39 +0000 https://www.logisticsmanager.com/?p=37488 Half of UK business decision-makers believe Brexit uncertainty has negatively impact their supply chains over the past five years, according to a study by Vuealta. In comparison, 22 per cent had suffered from supply chain disruption due to a cyber-attack, and 19 per cent from a natural disaster. Other factors said to have caused a […]

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Half of UK business decision-makers believe Brexit uncertainty has negatively impact their supply chains over the past five years, according to a study by Vuealta.

In comparison, 22 per cent had suffered from supply chain disruption due to a cyber-attack, and 19 per cent from a natural disaster.

Other factors said to have caused a negative impact were through the failure of a single supplier (30 per cent) and spikes in demand overstretching supply chain capacity (28 per cent). The report also found that a fifth of respondents thought customers would feel the impact of a supply chain failure within a day, giving them little time to fix issues when they arise.

“UK businesses want to grow, yet they’re at risk of seeing critical supply chains and logistics disrupted by events outside of their control. They know they can’t control the weather for example, or what may or may not happen over Brexit, so it’s clear they need to focus on what they can manage. That means planning for all eventualities and being able to respond in real time” said Ian Stone, chief executive of Vuealta.

Brexit destocking hits tunnel traffic

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DfT spends £800,000 on Brexit consultants https://www.logisticsmanager.com/dft-spends-800000-on-brexit-consultants/ https://www.logisticsmanager.com/dft-spends-800000-on-brexit-consultants/#respond Fri, 07 Jun 2019 11:37:45 +0000 https://www.logisticsmanager.com/?p=37282 The Department for Transport has spent £800,000 on Brexit consultants while the Border Delivery Group spent £10.2m, according to a report by the National Audit Office. In total, the NAO found that the government has spent at least £97 million on consultancy services to pave the way for exit from the EU. Top spender is […]

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The Department for Transport has spent £800,000 on Brexit consultants while the Border Delivery Group spent £10.2m, according to a report by the National Audit Office.

In total, the NAO found that the government has spent at least £97 million on consultancy services to pave the way for exit from the EU.

Top spender is the Cabinet Office, at £12.4m, followed by £10.2m spends at the Home Office as the Border Delivery Group (a cross-government team hosted by HMRC).

The NAO said: “Preparing for the UK’s exit from the EU has been a significant challenge for departments and has required skills such as project delivery and commercial skills that are in short supply.”

Six consultancies account for 96 per cent of the government’s Brexit work. These are: Deloitte (22 per cent); PA Consulting (19 per cent); PricewaterhouseCoopers (18 per cent); Ernst & Young (15 per cent); Bain & Company (11 per cent); and Boston Consulting Group (10 per cent).

Brexit delayed until Halloween

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Deadline extended for Customs training funding applications https://www.logisticsmanager.com/deadline-extended-for-customs-training-funding-applications/ https://www.logisticsmanager.com/deadline-extended-for-customs-training-funding-applications/#respond Tue, 23 Apr 2019 13:59:52 +0000 https://www.logisticsmanager.com/?p=36640 The UK government is to extend the deadline for businesses to apply for funding towards training courses that help them to complete customs declarations to May 31 2019. The British International Freight Association has welcomed this news. The funding was initially revealed in December 2018. Grants are being made available for all customs intermediaries and […]

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The UK government is to extend the deadline for businesses to apply for funding towards training courses that help them to complete customs declarations to May 31 2019.

The British International Freight Association has welcomed this news. The funding was initially revealed in December 2018. Grants are being made available for all customs intermediaries and traders completing customs declarations as a means of supporting training and the upgrade of IT systems.

“This scheme is intended to help support the extra demand for customs brokerage services associated with the UK’s departure from the EU, as well as issues associated with the replacement of the current system used to process customs entries,” said BIFA director general Robert Keen.

He noted that BIFA has highlighted concerns to the HM Treasury and HMRC regarding the capability of the Customs brokerage sector to increase capacity at a time when that sector already faces a shortage of staff of suitable quality and that it “could take up to a year to train staff to be fully conversant to prepare a range of basic Customs declarations, even if there was a sufficient number of trainers to train those staff, as well as relevant courses for them to attend.”

“So, the news of an extension to the deadline for this funding is very welcome, and we are encouraging our members who believe they might benefit to apply; if they have not done so already.”

More information and grant applications can be found at: https://www.gov.uk

 

BIFA welcomes £8m funding for customs training

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Brexit delayed until Halloween https://www.logisticsmanager.com/brexit-delayed-until-halloween/ https://www.logisticsmanager.com/brexit-delayed-until-halloween/#respond Thu, 11 Apr 2019 11:13:20 +0000 https://www.logisticsmanager.com/?p=36516 The European Union and the UK government have agreed a Brexit delay until 31st October. However, the UK could be booted out on 1st June if it fails either to ratify the withdrawal agreement by 22nd May or hold elections to the European Parliament by 26th May. The Freight Transport Association welcomed the fact that […]

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The European Union and the UK government have agreed a Brexit delay until 31st October.

However, the UK could be booted out on 1st June if it fails either to ratify the withdrawal agreement by 22nd May or hold elections to the European Parliament by 26th May.

The Freight Transport Association welcomed the fact that the potential cliff edge of a no deal departure from the EU had been postponed.

But, said Pauline Bastidon, head of global and European policy: “While the risk of no deal has receded for now, it is an outcome which cannot be excluded further down the line – indeed, it remains the legal default, in the absence of alternative arrangements.  FTA is therefore calling on its members to use this extra time wisely.”

The agreement was also greeted with relief by the Confederation of British Industry. Director-general Carolyn Fairbairn said: “This new extension means that an imminent economic crisis has been averted, but it needs to mark a fresh start. More of the same will just mean more chaos this autumn.

“Businesses will today be adjusting their no deal plans, not cancelling them.

“For the good of jobs and communities across the country, all political leaders must use the time well. Sincere cross-party collaboration must happen now to end this crisis.”

 

Logistics workers don’t want Brexit

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Logistics workers don’t want Brexit https://www.logisticsmanager.com/logistics-workers-dont-want-brexit/ https://www.logisticsmanager.com/logistics-workers-dont-want-brexit/#respond Wed, 10 Apr 2019 10:56:12 +0000 https://www.logisticsmanager.com/?p=36491 Only 14 per cent of workers in transport and logistics voted in favour of Brexit, according to a survey of 5,000 employees across a range of industries by WMB Logistics. Logistics workers, along with those in healthcare were the least enthusiastic for Brexit, while construction workers were the most pro-Brexit (71 per cent in favour). […]

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Only 14 per cent of workers in transport and logistics voted in favour of Brexit, according to a survey of 5,000 employees across a range of industries by WMB Logistics.

Logistics workers, along with those in healthcare were the least enthusiastic for Brexit, while construction workers were the most pro-Brexit (71 per cent in favour).

Asked why they hadn’t voted for Brexit, those in the healthcare industry were most worried about the future of the NHS and free healthcare (79 per cent), while those in the transport and logistics industry were more worried about how it would affect trade and retail (80 per cent).

Industries among the least enthusiastic for Brexit also included  wholesale and retail, recruitment, and education – 19 per cent in favour.

Other industries in favour of Brexit included law enforcement, finance and banking, and agriculture.

When asked if they felt differently about their vote in the lead up to Brexit being finalised, 37 per cent of those who voted for Brexit felt they’d made the wrong decision, compared to just 12 per cent of those who voted to remain, who now feel they should have voted to leave.

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DEFRA on the look-out for food stockpiling https://www.logisticsmanager.com/defra-on-the-look-out-for-food-stockpiling/ https://www.logisticsmanager.com/defra-on-the-look-out-for-food-stockpiling/#respond Mon, 08 Apr 2019 08:19:41 +0000 https://www.logisticsmanager.com/?p=36412 The Department for the Environment, Food and Rural Affairs has hired Kantar Worldpanel to study shoppers’ buying trends in the run-up to Brexit in case it needs to take action to deal with food stockpiling. The government’s contracts finder web site said: “The agri-food chain analysis team need to be able to monitor trends in […]

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The Department for the Environment, Food and Rural Affairs has hired Kantar Worldpanel to study shoppers’ buying trends in the run-up to Brexit in case it needs to take action to deal with food stockpiling.


The government’s contracts finder web site said: “The agri-food chain analysis team need to be able to monitor trends in households purchasing in order to assess changes in purchasing decisions as a result of EU-Exit, including a no-deal. The analysis of this information will inform short and medium term policy development including no-deal response interventions.”
The contract started on 21st March and is due to run until 6th May.

Inventory stockpiling hits record, survey finds

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AO builds £15m Brexit stockpile https://www.logisticsmanager.com/ao-builds-15m-brexit-stockpile/ https://www.logisticsmanager.com/ao-builds-15m-brexit-stockpile/#respond Thu, 04 Apr 2019 11:37:43 +0000 https://www.logisticsmanager.com/?p=36377 Online electrical retailer AO has revealed that it has stockpiled some £15 million worth of its fastest moving products as part of its Brexit planning, warning that this is having an impact on its cash position. In a trading update for the 12 months to 31st March, the Bolton-based company said that while group revenue […]

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Online electrical retailer AO has revealed that it has stockpiled some £15 million worth of its fastest moving products as part of its Brexit planning, warning that this is having an impact on its cash position.

In a trading update for the 12 months to 31st March, the Bolton-based company said that while group revenue was expected to some £900m, a 13 per cent rise on last year, adjusted EBITDA would be at the lower end of market expectations.

John Roberts, chief executive, AO.

On Brexit, it said: “As part of our Brexit contingency planning, during the last quarter of FY19 we increased our usual core fast moving inventory levels by c.£15m, with a corresponding impact on our cash position. This will help ensure we can continue to deliver our market-leading proposition to our customers.

Following the re-appointment of founder John Roberts as chief executive in January 2019 it has restructured its management team and, as a result of this together with charges for a loss making contract which we are unable to terminate in Germany, it anticipates incurring £2.5m exceptional costs.

Roberts said: “”Over the last eight weeks we have created a mindset shift from the numbers delivered in FY19; we are setting about realising our opportunities with pace and energy. I am delighted by the reaction of AO’ers and their passion for our future. We have already announced that we are testing a genuinely disruptive rental proposition.”

A sale to dwarf Black Friday…

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Inventory stockpiling hits record, survey finds https://www.logisticsmanager.com/inventory-stockpiling-hits-record-survey-finds/ https://www.logisticsmanager.com/inventory-stockpiling-hits-record-survey-finds/#respond Mon, 01 Apr 2019 11:17:36 +0000 https://www.logisticsmanager.com/?p=36304 Manufacturers efforts to build safety stocks ahead of Brexit have resulted in survey-record increases in inventories of both purchases and finished products, according to the IHS Markit/CIPS Purchasing Managers’ Index. The index rose to a 13-month high of 55.1 in March as manufacturers stepped up production to build-up inventories in advance of Brexit and also […]

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Manufacturers efforts to build safety stocks ahead of Brexit have resulted in survey-record increases in inventories of both purchases and finished products, according to the IHS Markit/CIPS Purchasing Managers’ Index.

The index rose to a 13-month high of 55.1 in March as manufacturers stepped up production to build-up inventories in advance of Brexit and also meet rising inflows of new work (mainly reflecting stockpiling at clients).

Trends in output and employment also strengthened as stockpiling operations at clients led to improved inflows of new work, the survey found.

 

Risk of no-deal Brexit increases

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Risk of no-deal Brexit increases https://www.logisticsmanager.com/risk-of-no-deal-brexit-increases/ https://www.logisticsmanager.com/risk-of-no-deal-brexit-increases/#respond Fri, 29 Mar 2019 16:06:55 +0000 https://www.logisticsmanager.com/?p=36280 The Freight Transport Association has warned that the risk of a no-deal Brexit has increased following the rejection of the government’s withdrawal agreement for the third time on Friday. MPs voted by 344 to 286 to reject the deal, which means that the UK is now due to leave the EU on 12th April without […]

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The Freight Transport Association has warned that the risk of a no-deal Brexit has increased following the rejection of the government’s withdrawal agreement for the third time on Friday.

MPs voted by 344 to 286 to reject the deal, which means that the UK is now due to leave the EU on 12th April without a deal. The alternative is to delay Brexit for an extended period which would involve holding elections to the European Parliament on 23rd May.

Pauline Bastidon, head of European policy, said: “FTA therefore continues to advise its members to keep preparing themselves for the disruptive impact of a no-deal Brexit in less than two weeks’ time.

“This is no menial task: logistics and supply chain managers in the UK will face what is possibly their biggest challenge in a generation. However, FTA welcomes the temporary easements conceded by both sides.

“While logistics will do its best to meet the challenge, the costs and disruptions to supply chains generated by a no deal outcome – which go well beyond potential delays at the border – should not be underestimated, and neither should their negative impact on the competitiveness of UK plc.”

Little love for Operation Brock

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Little love for Operation Brock https://www.logisticsmanager.com/little-love-for-operation-brock/ https://www.logisticsmanager.com/little-love-for-operation-brock/#respond Wed, 27 Mar 2019 12:32:13 +0000 https://www.logisticsmanager.com/?p=36223 Operation Brock, the government’s plan to deal with disruption at the channel ports, has come in for criticism after being implemented on Monday ahead of Brexit. Operation Brock queues lorries bound for mainland Europe on the coast bound M20 and uses a contraflow on the London-bound carriageway to enable other traffic to travel in both […]

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Operation Brock, the government’s plan to deal with disruption at the channel ports, has come in for criticism after being implemented on Monday ahead of Brexit.

Operation Brock queues lorries bound for mainland Europe on the coast bound M20 and uses a contraflow on the London-bound carriageway to enable other traffic to travel in both directions.

But, according to local press reports, there were three accidents in the first 48 hours of the contraflow’s operation.

And Charlie Elphicke, MP for Dover and Deal, said: “This is not a solution. It means yet another section of the M20 with a reduced speed limit. And using Manston Airport is a bad idea. It’s a long way from the port and lorries will be expected to use single lane carriageways to get there.

“This project just kicks the can down the motorway. What we need to see is proper investment – in lorry parks and a dualled A2. It’s been needed for years, regardless of Brexit.”

Highways England argues that Operation Brock is a significant improvement on Operation Stack. Project director John Kerner said it could be used to queue up to 11,000 lorries heading for mainland Europe, while keeping other traffic flowing for people living, working and travelling in and around Kent.”

The idea behind Operation Brock is that it has a number of stages that can be deployed sequentially to scale up to meet demand. The contraflow between junctions 8 and 9 allows lorries to be queued on the coast-bound carriageway.

If the M20 becomes full, lorries for Dover will be directed to Manston airfield, while the M20 will be used to hold traffic for the channel tunnel.

Then, if more capacity is needed, the M26 could also be used to hold lorries for the channel tunnel.

EU: we’re ready for no-deal Brexit

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