- 81% said supply chains becoming more expensive
- 51% of procurement professionals in the retail and wholesale sector looking for UK suppliers as a result of Brexit
- 46% re-negotiating contracts with suppliers
- 39% consolidating relationships with existing suppliers
- 57% said they are expecting their suppliers to reduce prices
|How are UK supply chain managers in retail and wholesale preparing for Brexit?|
|Consolidating relationships with existing suppliers||39%|
|Supply chains becoming more expensive||81%|
|Looking for UK suppliers as a result of Brexit||51%|
|Supplier contracts being negotiated||46%|
|Expecting suppliers to reduce their prices||57%|
|Mapping costs of potential tariffs||43%|
|Making long-term plans difficult||80%|
A high proportion of retail companies (65%) say that suppliers would have to reduce their prices as a result of Brexit, according to the Chartered Institute of Procurement & Supply (CIPS).
A survey of 2,111 supply chain managers across all sectors also found that 32% of UK businesses who work with suppliers on the continent are actively looking for alternative suppliers based in the UK. The retail and wholesale sector posted a higher response at 51%.
The longer-term impacts also included re-shoring supply chains to the UK (16%) and that a greater part of supply chains would go outside the EU. There was also a dearth of supply chain knowledge in the sector highlighted by 29% of respondents and 80% agreed that Brexit made creating long-term plans difficult.
For the full retail and wholesale, global and other sector results download: The Brexit Storm – How procurement and supply chain professionals are tackling the issues