SUPPLY CHAIN
Keep
moving F
ew would dispute the fact that working in supply chain is extremely demanding and stressful. This is especially true for professionals working in the food and drink industry, which relies heavily on supply chains that carry goods safely, smoothly, and quickly from where they are produced to where they are consumed. Given the close relationship between businesses in the UK and the EU, in the post-Brexit world, many supply chains now cross customs borders. This adds another layer of complexity to moving time-sensitive goods. Combined with rising costs caused by geopolitical and economical instabilities as well as the need for businesses to reduce carbon footprint in the name of sustainability, the work of the supply chain team has entered a new era of high pressure. This short article focuses on a specific aspect of supply chain, namely, the crossborder part of it. Some of the new risks and
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compliance issues will be highlighted, and the secret to success discussed, to help your business keep goods moving.
New trading relationship, new risks Since the beginning of 2021, businesses in the UK have had to trade with their suppliers and customers in the EU on very different terms than before. Despite there being a so-called ‘free’ trade agreement between the UK and the EU, trade is far from free. Most importantly, customs formalities are now required. Deadlines for the introduction of checks on food and drink have been shifting which has made planning difficult. But one thing is certain: moving goods between the UK and the EU has become more time consuming and costly. Even when goods that are being moved across borders do not attract any customs duties, the cost for the business to
complete customs formalities can quickly add up, chipping away the already slim margin. The cross-border part of a supply chain is often the most vulnerable part of it. As such, it requires specialist attention. However, given few businesses in the UK have had to deal with customs formalities prior to Brexit, this specialist know-how is still in development. Customs specialists with food and drink sector experience are quickly snatched up whenever they come up in the market. The risk of not fully understanding how to deal with customs formalities to avoid delays has never been scarier in scenarios where the goods have a short shelf life and delays would be detrimental. For example, when businesses have shipped goods to their customers without realizing a health certificate is required, those goods must be returned to source (potentially attracting another round of health certificate admin to
