Beacon Update: 20th October 2020
As you are aware, the UK is leaving the EU with the transition period coming to an end on the 31st December of this year. If a new deal cannot be agreed by the end of 2020, then from the 1st of January 2021, the UK and EU will revert to trading on WTO rules. This would mean tariffs on some goods, particularly food and agriculture, and much higher barriers to trade compared to the EU single market.
As the seamless supply of products and services to our customers is Beacon’s number one priority, we have been carrying out a risk assessment with our suppliers to understand the impacts of any major changes following the end of the transition period. We have also carried out a survey with our supply chain to ascertain how the various potential outcomes may affect relevant procurement categories differently. The results of this research will be published on this site over the coming weeks, along with the most current ‘Brexit’ statements from our main supply partners.
Our initial supplier discussions have focused on the key areas we forecast could be most directly impacted by Brexit and the various scenarios associated with it. These include:
Having a Brexit ready trading model that encompasses all potential outcomes
Reviewing what products from the Beacon basket is sourced from within the EU and whether suppliers have alternative sources in place
Ensuring supply-chain workforce capacity will not be negatively affected by any reduction in immigration from EU Nationals
However, due to the uncertainty around the final outcome and whether a deal will be negotiated, it’s too early to share any specifics about the likely impacts and whether any further mitigation is required. Our Brexit Working Group will continue to liaise with our suppliers, and we will keep our customers informed of any new developments, as and when they arise.
In the meantime, if you have any queries or concerns on this subject, please email our customer support team by using the form below