Brexit – exiting the EU
Preparing for 31st December, 2020
As the end of the transition period draws closer, we’ve revisited and updated our plans and advice to help customers and suppliers navigate any challenges and take advantage of potential opportunities.
Click here to hear our recent podcast Taking Brexit: preparing for the end of the transition with James Bielby, CEO of the Federation of Wholesale Distributors, Jim Gouldie Supply Chain & Technical Services Director and Tim Adams Director of Corporate Sales & Marketing at Bidfood.
Whilst we don’t yet know the outcome of trade negotiations with the EU and the rest of the world, we’ve worked with government, industry bodies, UK and EU customs, and suppliers, basing our plans on reasonable worst case assumptions about potential delays to imports.
Our teams are well versed with the challenges of international trade, and have put in place robust plans and preparations to ensure continued availability of supply for our customers, whether or not the UK leaves without a deal on 31/12/20.
How we’re supporting customers
We’ve developed reports for customers that detail any risks to availability of the top 50 products that they buy from Bidfood, (red, amber or green levels), show the contingency actions we’re planning to implement to mitigate those risks, and any potential changes in cost as a result of new tariffs.
But what if there is a deal?
Some things will still change whether or not UK and EU negotiators agree a deal, which will have implications for supply chain as well as menu planning.
New immigration rules will still apply, as well as veterinary checks, new procedures, certification and other paperwork for import and export of produce, dairy, poultry and meats. It is anticipated there could be a shortage of vets, resulting in some delays for these categories, and there may well be some currency fluctuations to take into account too.
So, whatever the outcome of current negotiations, we will all need to prepare for changes at the end of the transition period.
Our top tips on planning
✔ Work closely with your suppliers to build contingency stocks
✔ Be proactive with your nominated line suppliers
✔ Review your plans for menu changes and new lines
✔ Talk to your Account Manager so that they understand and can support your plans and share relevant reports about the top 50 products you buy from us
✔ Keep up to date with government and industry advice on what will change and what to prepare for
✔ Do make sure you are prepared for both deal and no-deal scenarios.
We’ve assessed the availability risk across our range, and the potential impact of the UK’s new standard tariffs which would apply where no trade deals have been agreed. Where we have identified products that are at risk, we’ve put in place mitigation plans, for example building contingency stocks, identifying alternatives or more efficient routes to market.