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Beware The Brexit And The Supply Chain

Posted on July 4, 2016 at 6:45 PM

If you write about corporate governance it is sheer folly to ignore the supply chain.

And I haven't, oh I haven't....I have covered it here on Board Talk (use the search engine it works) and also on Forbes.

Ooh thank you Google - one search and I find latest here on Board Talk on collaboration re the supply chain, and on Forbes in February and previously in August last year on the need for leadership and the supply chain. There is more: it depends on your appetitie.

So, in terms of uncertainty and risk, what could business have to fear from Brexit regarding the supply chain? Tomes are doubtless being written at this very moment, and fear is a great way to make money on consultancy.

I just offer some vews here from Dr Christos Tsinopoulos, Senior Lecturer in Operations & Project Management at Durham University Business School, as food for thought. He comments on the repercussions for the UK manufacturing industry following Brexit. The emphasis in bold is mine, not his.

“Brexit repercussions for the UK manufacturing industry will be questioned by many over the next few weeks and months. What we do know is that the integration across a supply chain is king. Research conducted by Durham and others demonstrates how a closely integrated supply chain, where there is an easy exchange of ideas and information, is likely to perform better. Supply chains know this and over the years there have been several efforts to bring manufacturers closer together.



In order to make this happen, he says "there needs to be a degree of standardisation in legislation, systems, policies, and even engineering methods. Over the last few years this has largely been facilitated by several European bodies. Many have been guided by the EU whereas others have been industry led. The result has been some highly integrated and efficient supply chains which have benefited many of us.


The good news here is that given the high degree of integration of many of them they are relatively difficult to change in the short term. The bad news however is that in the medium and longer term there would be a higher incentive to do so. In a competitive environment where small changes can have significant impact on performance and relationships, switching between supply chains and countries may become an increasingly popular choice.”

One more thing to keep you up at night ?

Categories: Supply Chain, Risk, Scrutiny