How will Brexit affect the supply chain resilience and sustainability of global logistics?

2 What is supply chain sustainability?

Supply chain sustainability is the integration of environmental, social, and economic aspects into the design, planning, execution, and evaluation of a supply chain. A sustainable supply chain aims to minimize its negative impacts and maximize its positive contributions to the natural environment, human well-being, and long-term economic viability. Supply chain sustainability is often driven by stakeholder expectations, regulatory requirements, competitive advantages, and ethical values.

3 How will Brexit impact supply chain resilience?

Brexit will bring a number of challenges to the supply chain resilience of global logistics, such as increased trade barriers, reduced visibility and agility, and heightened uncertainty and volatility. These new customs procedures, tariffs, quotas, and regulatory standards will make cross-border transactions more complex, costly, and time-consuming. Furthermore, Brexit will reduce the availability and quality of data sharing between the UK and the EU, impairing the visibility and traceability of goods and services along the supply chain. Additionally, Brexit will create a high degree of uncertainty in the political, economic, and legal environment which may lead to disruptions, disputes, and conflicts in the supply chain. All these factors can decrease customer confidence and trust in suppliers, partners, and investors.

4 How will Brexit impact supply chain sustainability?

Brexit will also have implications for the supply chain sustainability of global logistics, such as altered environmental standards, modified social expectations, and shifted economic opportunities. These changes may create divergences or inconsistencies in the environmental standards and practices of different supply chain actors, as well as variations or conflicts in the social standards and practices. Additionally, Brexit will influence the economic opportunities and challenges that face the UK and the EU, creating changes or uncertainties in the economic performance and prospects of different supply chain actors. All of this could affect their compliance and performance in areas such as carbon emissions, waste management, resource efficiency, biodiversity, human rights, labor conditions, health and safety, social inclusion, innovation, quality, efficiency, and competitiveness.

5 How can you prepare and adapt to Brexit?

In order to prepare for the post-Brexit world, global logistics providers and users must adapt to the new realities and uncertainties of Brexit. A comprehensive analysis of current and future supply chain activities, partners, and markets affected by Brexit should be conducted to identify potential risks and opportunities. Strategies and operations should be reviewed to align with business objectives, customer needs, and stakeholder expectations in the post-Brexit context. Furthermore, digital technologies, data analytics, and innovation should be leveraged to enhance visibility, agility, and resilience. Additionally, relationships and networks should be strengthened with existing and potential supply chain partners. Communication should occur frequently about plans, expectations, and concerns regarding Brexit. Collaboration should also take place to find solutions, share best practices, and create synergies.