Truck and Track Spring 2021

www.truckandtrack.com Spring 2021 Truck and Track 25 BREXIT - DESCARTES Brexit on their business, 82% of companies positively impacted since Brexit are more certain. It is extremely telling that the businesses that are thriving post-Brexit are those that started to prepare sooner: 24% in the second half of 2019 and 33% in the first half of 2020. Furthermore, these companies took a holistic approach, taking into account the diverse requirements of post-Brexit trade andmaking the required changes prior to 2021. Preparing early not only allowed these companies to work closely with experts who understand the complexities of global trade but also train staff in new supply chain software and procedures to ensure they were confident and up to speed on 1st January. Next Steps With the next phase of Brexit changes – an end to deferred import declarations from July 2021 and safety and security filings required from 1st January 2022, there is still much for businesses to prepare for. There is little doubt that the huge demand for customs brokerage services is having an impact on prices – and smaller companies are struggling to gain access to services, with brokers not taking on new clients. But this is not a finite market – and there are a number of new organisations stepping up to provide additional services. Alternatively, companies can invest in dedicated supply chain software solutions and handle customs declarations in-house. With a cloud-based solution, all the vital customs and shipping data is secure yet accessible 24/7. It provides immediate insight into landed costs – allowing integration with point of sale systems to provide customers with an immediate, complete and accurate view of all costs, from tax to delivery. This approach not only adds control but also provides companies with an easy route to scale up exports in both the EU and the rest of the world, without adding costs. Conclusion Brexit has thrown many businesses into a spin, especially those whose plans were derailed or delayed by Covid-19. But as this research shows, when it comes to business success, planning is crucial not only for compliance – but also growth and resilience. Those companies that prepared earlier are performing better, they aremore confident about the future and they are able to maximise the opportunities left by competitors unwilling or unable to trade in the EU. With the changes due from July through to January 2022, early preparation is, once again, key to avoiding expensive disruption. Plus, once companies have successfully embraced trade with the EU, why not expand into the rest of the world? An effective post-Brexit EU trading model opens the door to a huge new global opportunity. For more information, see www.descartes. com/brexit and to download a copy of Beyond Brexit Research Whitepaper see https://www.descartes.com/lp/brexit- realities-whitepaper. Unsure Not at all concerned Somewhat concerned Not very concerned Quite concerned * How concerned are you about the customs brokerage market when it comes to its capacity for the timely handling of export declarations? * 43% of companies are concerned about the customs brokerage market. Bigger companies tend to be more concerned. ����� 15 % ����� 28 % ����� 29 % ����� 14 % ����� 7 % ����� 7 % Very concerned * What ha ve been the real-world impacts of EU supply chain disruption to your business been? Delays in delivering/receiving goods ����� 33 % Loss of demand from EU customers ����� 24 % Increased customer dissatisfaction ����� 20 % Lack of stock for sale ����� 19 % Passing on landed costs to UK customers* *Including 30% of Electronics, Computer and Telecommunication Businesses ����� 19 % ����� 19 % Unable to meet orders Laying off staff ����� 14 % Damaging of reputation/brand ����� 14 % ����� 14 % Unable to stockpile goods/produce for export ����� 12 % Wasted stock (i.e. perishable goods or returned/rejected items) ����� 12 % Reducing working hours Temporary or permanent halting of business expansion plans* *Including 27% of office managers ����� 17 % Securing visas and work permits to operate in the EU* *Including 25% of Electronics, Computer and Telecommunication businesses and Engineering and Manufacturing businesses ����� 15 % ����� 10 % Discrediting of professional qualifications in the EU ����� 1 % Other ����� 15 % None of these Pandemic Impact 76% of businesses have had their Brexit response disrupted by COVID-19 Preparation Delay 46% of Brexit preparations happened during 2020, especially during the second half of the year Top Level Findings Mixed Performance 43% of businesses have been impacted negatively by Brexit in 2021 – but 19% of businesses are thriving in a post-Brexit world Economic impact of Brexit 53% expect their 2021 turnover to be lower than if the UK had remained in the EU – and the average reduction is 29% Disruption Reality 90% of businesses have faced disruption since the end of the transition period