Companies to need more 4PL after Brexit

Written By Reagan Nyandoro


'Operation Stack' HGVs waiting at Dover, by Barry Davis

A report from Deloitte has outlined the potential impact of Brexit on consumer goods suppliers, including why the UK’s exit from the European Union is likely to increase companies’ reliance on 3PL and 4PL.

The analyst’s January 2018 Consumer Review reveals that a third of consumers believe goods and services in general will cost more after Brexit, with a similar number expecting to cut back on their own spending across all categories.

For the consumer products sector, this means managing any potential increase in supply prices and disruption to supply chains – especially internationally, where more goods could get held at the UK border for customs checks.

“With potential trade barriers and increased bureaucracy, supply chains could become less efficient and the timeframe for getting goods from the country of origin to the destination may increase,” writes Deloitte’s lead partner for consumer business Nigel Wixcey.

However, Deloitte also identifies the potential for British-made goods to become more competitive in international markets as exchange rates adjust following Brexit, as well as possible new trade deals outside of the EU.

The report adds: “Companies will need to proactively manage their supply chains, possibly through enhanced forecasting, and introduce processes to ensure that any disruption is managed effectively. Organisations that operate a just-in-time supply chain or trade in perishable goods are at particular risk as delays to delivery of goods become more likely.

“However, once companies are able to factor the changes into their supply chain planning and adjust accordingly we expect to see them become increasingly reliant on their third party logistics (3PL) and fourth party logistics (4PL) providers.”

Future-proof supply chain planning

4PL works across supply chains with in-depth analysis and fast response to changing market conditions, to make sure you stay one step ahead of any developments in your industry and in your company’s own unique supply network.

By coordinating activities from multiple supply chain operators, it gives you a robust network that is able to take the strain of any shocks in your sector, while ensuring your shipments and deliveries are carried out in the most cost-efficient way possible.

With home-grown innovation in supply chains, companies in all British sectors can prepare for any domestic effects following Brexit – and 3T Logistics are here to help with that.

To find out more about our work in your sector and what we can do to future-proof your supply chain planning, call 3T Logistics on 0116 2824 111 today.

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