Brexit has increased the supply chain in Western Europe from 2.60 to 2.63 in Q3 of 2016, whilst the global supply chain risk has risen from 80.8 to 81.6 according to the CIPS Risk Index.
The rise in risk is reported to be due to disintegration of the political consensus over globalisation, with concern over post Brexit trade relationships impacting on Western Europe. Changes in exchange rates have already pushed up prices by some suppliers. However it is worth noting the study also found many British exporters were benefiting from the lower exchange rates which have made them more competitive due to the weaker pound.
At these uncertain times an experienced Supply Chain Manager can make all the difference ensuring that the business is more than capable of dealing with short-term changes within the supply chain.
Although the full impact will not be known for quite some time, no doubt those managing supply chains will be closely following the upcoming Brexit negotiations whilst preparing contingency plans accordingly.