A new downloadable resource from SpendEdge provides holistic plans to address procurement risks in the wake of Brexit.
Changes occurring in the global trading rules due to negotiations between the UK government and the European Union are impacting the procurement processes of companies worldwide, especially those with significant operations or sales in the UK.
Trade agreements are becoming increasingly complex and procurement risks are rising at an alarming rate. Adding to the woes is that fact that the financial plans of companies are proving to be inefficient, and the period of uncertainty is likely to be prolonged.
Formulating strategies that can mitigate procurement risks arising due to Brexit is crucial for companies to gain a competitive advantage.
Key Procurement Risks Arising Due to Brexit
Below are just a few challenges, outlined in the paper, which companies face worldwide as a result of Brexit. The downloadable resource provides deeper insights into these challenges and tips to mitigate their effects.
- Exchange Rates – The declining value of GBP against USD is impacting companies, directly or indirectly. They are facing challenges in preparing themselves amidst the rising uncertainty as the types of deals UK government might secure are still obscured. This is resulting in high import costs and making supply chains more expensive impacting the movement of goods.
- Contract negotiations – Companies are finding alternative ways of securing contract agreements that can provide them the flexibility to address currency fluctuations. They are figuring out clauses that can allow them to renegotiate prices while responding to Brexit.
- Compliance risk – The changing economic dynamics is impacting different areas of trade. This is necessitating companies to explore new trade routes that can reduce the cost and time required for procurement. In addition, they need strategies that can comply with multiple regulatory systems while procuring goods and services.
Managing Post-Brexit Procurement
Understanding these procurement risks, and finding ways to mitigate their effects, can help companies negotiate better value, mitigate loss due to currency fluctuations, and ensure compliance amidst a sea of new regulatory systems.