Few British companies prepared for no-deal Brexit

no-deal Brexit

Less than one in five British companies (18%) are currently prepared for a no-deal Brexit. Meanwhile, more than half of Dutch and Flemish logistics service providers are concerned about the UK leaving the EU; 48% expect the Brexit to lead to changes within the supply chain. These findings come from research commissioned by Descartes among more than 500 UK supply chain managers and 40 Dutch and Flemish logistics service providers.

Of the Dutch and Flemish logistics service providers, 30% regard the biggest current Brexit challenge lying in minimizing the impact on deliveries to and from the UK. A quarter consider reducing delays to be the biggest hurdle to overcome. Likewise, British companies are concerned about the consequences of a no-deal Brexit; around two thirds (67%) say they are worried about supply chain delays and 40% are anxious about the impact of customs declarations on their business, according to Descartes, which is a market leader in logistics software solutions.

Impact of customs declarations on the supply chain

A total of 70% of the logistics service providers surveyed are preparing for the Brexit by investigating the impact of import/export customs declarations on the supply chain. Also high on the to-do list of Dutch and Flemish logistics service providers is to establish agreements on delivery and prices after the Brexit (43%), implement software for import and export declarations (35%) and deal with likely delays at the borders (40%). According to one in five Dutch, Flemish and British companies, they are already feeling the effects of the Brexit.

Coronavirus crisis hampers Brexit preparations

“In two thirds of the companies, the coronavirus crisis has pushed the Brexit preparations down the list of priorities,” says Martin Meacock, Director Product Management at Descartes. “However, the end of the transition period is rapidly approaching. Our research shows that everyone intends to continue doing business with the United Kingdom beyond that point. Companies that want to minimize the business impact of the Brexit would therefore be wise to check whether they have the necessary resources and capacity to take care of matters such as customs declarations and import registrations themselves. That way, they can be sure that they are well prepared for the consequences of the Brexit.”