Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Stockpiling decision should not be taken lightly

29-Nov-2018
Stockpiling decision should not be taken lightly
“This announcement came as little surprise to us, as our recent survey of Grocery and FMCG decision-makers found that 61% are already stockpiling raw materials and/or finished goods. Others are reviewing their levels and sourcing, with plans to build stocks ahead of the 19th March deadline. Some were also already working on the basis of a no-deal Brexit being the most likely outcome, even before the government released its guidelines on the issue.

“While stockpiling is one way to alleviate the short-term effects of a no-deal situation, it is a decision that must not be taken lightly, given the significant increased costs and storage space requirements to consider. However, we would recommend that all businesses take this opportunity to review their supply chains to ensure they are as healthy as possible, as there is still time to identify any major risk areas and implement risk-reduction strategies.

“Affected organisations should also consider applying to become an Authorised Economic Operator, as it’s widely agreed that achieving AEO status is likely to be one of the most effective mitigating factors in any Brexit situation.”

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