A survey of supply chain managers by CIPS (the Chartered Institute of Procurement & Supply) has found that customs delays of just half an hour could cause one in 10 impacted businesses to go bankrupt.
The survey of 1,310 EU and UK-based supply chain managers found that 10 percent of respondents believed that their company would probably go bankrupt if goods were delayed at the border by between 10-30min. This increased to 14 percent for delays of 1-3hr, and 15 percent for 12-24hr.
According to the survey, contingency plans that UK companies are making include:
- Nearly a quarter (24 percent) are planning to stockpile goods in the future, and 4 percent already are.
- More than a fifth (21 percent) are building more flexibility into contracts and the same percentage are looking for alternative suppliers outside the EU.
However, 48 percent of respondents said they could not make any preparations as future trade arrangements were still too unclear, and half of companies said they would struggle to find suppliers and skills in the UK after Brexit.