The IGD has launched Brexit Workout – a six-step plan to help companies to take a proactive approach in their planning and seize a competitive advantage.
The plan offers users an outline to take their companies through the potential outcomes, implications on the wider supply chain and work required by companies to succeed.
The six steps are:
- Identify one product as your test case, probably a best-seller or signature item
- Itemise the inputs needed to create the product and bring it to market; not just the ingredients and packaging but also machinery, energy, labour, administration etc.
- Consult with all stakeholders to understand the worst-case scenario for disruption from Brexit for the cost, quality and availability of these inputs
- Piece this together to get a picture of the overall Brexit risks for the produce
- Consider the steps you could take to mitigate these risks
- Consider how representative your test product is likely to be for others in your range
IGD chief economist James Walton said: “The alternative of sitting back and waiting for clarity while the clock runs down is extremely risky. Negotiations could go to the wire, with results emerging at the last moment. The least likely outcome is ‘business as usual’ and better prepared competitors could use this period of confusion to seize a decisive advantage.”
“In every aspect, existing UK and European grocery supply chains are the product of their evolution in the Single Market and its regulatory framework. Even businesses that operate entirely within one country will have international connections somewhere along their chains that could be disrupted when the UK is no longer a member.”
♦ The fourth round of Brexit talks came to an end on 28th September with a slightly more positive assessment from Michel Barnier, the EU’s chief negotiator.
Nevertheless he highlighted some critical stumbling blocks that need to be overcome before talks on a new trade relationship can take place.
He said: “We’ve had a constructive week – yes – but we are not yet there in terms of achieving sufficient progress. Further work is needed in the coming weeks and months.”
The next round of talks is due to start on 9th October.