The five key areas for businesses to address in post-Brexit era - Euan West

A month post the Brexit deal taking effect, it is clear that the region’s businesses are trading in a much-changed global market.
Businesses are being forced to adapt to the post-Brexit worldBusinesses are being forced to adapt to the post-Brexit world
Businesses are being forced to adapt to the post-Brexit world

There are many areas Yorkshire companies need to focus on but, based on the subjects our business advisory firm is being approached about, we are seeing five key areas.

1) Get to grips with rules of origin and supply chain visibility

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‘Rules of origin’ is a key business phrase since the trade deal. These are tariffs faced dependent on where goods originally came from. For example, if a product comes in from Asia and is then sent to a customer in the EU without value being added (by substantially transforming it, not simply repackaging), duty could be faced in the UK and EU – double duty.

That’s going to impact the commercial terms of manufacturers, distributors, retailers and service providers and affect profit and loss. It could break some business models. 2021 is the time to create a resilient and agile supply chain network both globally and locally.

2) It is critical to have the right documents

Many of the delays at ports are the result of incorrect or incomplete paperwork. To minimise delays, a firm’s operations team plus suppliers, buyers and hauliers must under-stand the requirements around customs declarations – both sides of the UK/EU border. To make things even more complicated, these are now specific to different ports and products. Abdicating responsibility to logistics partners is not a strong plan.

3) Customers need communication

Having open communication and clear lines of sight across the supply chain is going to be more important than ever. Anyone who has ever waited for a package to arrive knows how important it is to get regular communications from the sender, to help track its progress.

4) Stick to what sells best

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While customers love choice, we suggest they prioritise getting what they ordered on time and at a competitive price. Businesses getting to grips with new trade rules, while also facing possible staffing shortfalls due to the pandemic, might find their service is impacted, especially the ability to offer a full suite of product options. In these circumstances, it’s better to restrict choice than to give consumers lots of options but fail to deliver.

5) People also need paperwork

The end of the Brexit transition period impacts the movement of people as well as goods. Any EU nationals working for businesses in the UK need to apply for settlement status before the end of June. People who live in the EU and come to the UK regularly for work, should apply for a frontier worker permit within the same timeframe.

Now’s also the time to implement a system to track how long employees spend in each EU country as the 90-day visa-free period is not per country but aggregated when travelling across Schengen area countries.

Times of change can bring opportunity. When we polled business leaders attending our Brexit webinar this month, gaining new domestic customers was considered the greatest growth opportunity (39 per cent) in a market which may cause consumers to be nervous about buying online from EU countries, due to the risk of delays and cost increases.

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Looking beyond the EU’s borders was also cited by 34 per cent of business leaders who see new international customers as an opportunity for growth.

Finally, it’s worth noting that this isn’t the end but the mid-point in negotiations on UK-EU relations. There are still crucial talks on data adequacy and financial services. So we can expect more guidance in the coming weeks and months.

By Euan West - KPMG’s Leeds office Senior Partner

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