Uncertainty with ongoing Brexit negotiations creating warehousing headaches

Brexit. Whether you like it or not, it is happening!

At Rackit we have seen first-hand the affects it is currently having on business warehousing and storage. Many of the warehouses we have seen are incredibly full, with companies stockpiling goods due to growing concerns over a potential no-deal Brexit impacting the transport of goods from the EU. According to an article from the Guardian, stockpiling is a tactic being applied by many large operations. The article reports “Companies ranging from the carmaker Bentley to pharmaceutical firms such as GlaxoSmithKline and Sanofi, the folding bike maker Brompton and Premier Foods – which makes Bisto, Sharwood’s and Mr Kipling – have all announced plans for stockpiling.”

(Available: https://www.theguardian.com/politics/2019/jan/21/uk-warehouse-space-nears-capacity-firms-stockpile-for-brexit).

The suggestion that large organisations such as Bentley and Premier foods are nearing storage capacity highlights the total uncertainty surrounding Brexit negotiations. It could be said that the reported warehousing issues faced by large corporations may not be quite as troublesome as those faced by smaller enterprises with less capital and warehouse space. Smaller businesses that trade with Europe must ensure all current storage solutions maximise their available space or they may encounter increased lead-times in their supply chains, ultimately effecting sales which could be incredibly damaging to the lifespan of the business following withdrawal from the E.U.

The Guardian further suggests that stockpiling within U.K manufacturing is at an all-time high and retail and wholesalers are raising their stocks at an alarming rate mirroring the actions undertaken in the 2008 financial crisis. We hope that a deal can be struck as soon as possible to allow greater transparency and time, albeit short, for businesses to plan an efficient warehousing and logistics strategy post Brexit.

The United Kingdom Warehouse Association are currently encouraging members to prepare for a “no deal”. The link below provides an outline of the step’s organisations must take to ensure a smoother transition for international trade in the event of a “no deal” Brexit.

https://www.ukwa.org.uk/market-intel/ukwa-advises-members-to-prepare-for-no-deal/

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