EU companies moving away from UK suppliers as Brexit looms, says survey
A survey from the Chartered Institute of Procurement and Su...
European companies looking to move supply chains away from the UK, according to CIPS survey
A survey from the Chartered Institute of Procurement and Supply (CIPS) has revealed that 63% of non-British European companies are planning to stop using UK suppliers.
The research showed a sizeable jump from the 44% figure that was announced in May as businesses grow increasingly concerned by the sluggish pace of Brexit talks between the UK and the European Union.
It also highlighted the fact that one in five British companies are encountering difficulties in securing contracts post-March 2019, which is when the country is due to finalise its exit.
"British businesses simply cannot put their suppliers and customers on hold while the negotiators get their act together," said Gerry Walsh, CIPS’ group CEO.
"The lack of clarity coming from both sides is already shaping the British economy of the future - and it does not fill businesses with confidence."
The survey of 1,118 supply chain managers in the UK and Europe also finds that two fifths (40%) of UK businesses with EU suppliers have begun the search for domestic suppliers to replace their EU partners, up from 31% in May.
Just over a quarter (26%), however, are taking the opposite approach and investing more time to strengthen their relationship with valuable suppliers on the Continent.
The shift comes as the Brexit negotiations appear to be deadlocked with half of UK businesses saying they are becoming less confident that the UK and EU will secure a deal which continues to offer ‘free and frictionless trade’, while 35% of UK businesses feel unable to prepare due to the lack of progress on a future trade relationship.
This uncertainty has meant that one in five (20%) UK businesses with EU suppliers have found it difficult to secure contracts that run after March 2019.
Despite a formal separation still being some time away, nearly one in ten (8%) of UK businesses said their organisation has already lost contracts as a result of Brexit with 14% believing part or all of their organisation’s operations will no longer be viable.
Supply chain managers are clear where the Government should focus as the next phase of the negotiations begin with 73% saying keeping tariffs and quotas between the UK and Europe to a minimum should be the main priority for the negotiations.
In response, the Confederation of British Industry has said that two third of British companies will have implemented contingency plans for Brexit by March if a deal hasn’t be agreed.
Accenture Acquires SCM Software Firm Blue Horseshoe
Accenture has announced its acquisition of Blue Horseshoe, a US-based supply chain management software provider and consultancy firm.
Upon completion, Blue Horseshoe’s 349 professionals will join Accenture’s Supply Chain & Operations group, expanding the professional services group’s capabilities to create more interconnected and resilient supply chains for clients.
“To be competitive, companies need to transform their supply chains to deliver the innovative and hyper-personalised products, services and experiences that are in high demand—and fulfilment is core to that transformation,” said Renato Scaff, Accenture’s Supply Chain & Operations North America lead. “Blue Horseshoe’s deep fulfilment consulting experience and methodologies support Accenture’s vision for building customer-centric, resilient and responsible supply chains that benefit people, society and the planet.”
Who are Blue Horseshoe?
- Founded: 2001
- CEO: Chris Cason
- Employees: 349
- Offices: 4 in USA, 1 in Amsterdam, 1 in Estonia
- Key customers: Lids, Pabst Brewing Co., Half Price Books, Britax, Major Brands
Founded in 2001 in Indiana, USA, Blue Horseshoe now operates from six offices across the US and Europe. The company provides cloud-based solutions for supply chain management, ERP, warehouse management and transportation management systems, including its own Supply Chain Cloud platform, as well as Oracle NetSuite and Microsoft Dynamics 365 Supply Chain Management as a Microsoft Inner Circle Partner.
Blue Horseshoe specialises in fulfilment and distribution solutions, with expertise in the food and beverage, consumer packaged goods, and retail distribution industries. Over the past 20 years, the company has improved around 700 supply chains, including those of leading companies such as fashion retailer Lids, cosmetics company Regis Corporation, Pabst Brewing Co., and family-owned bookstore chain Half Price Books.
“For two decades, we’ve worked with clients to build connectedness, efficiency and automation across their enterprise and supply chain operations,” said Chris Cason, CEO, Blue Horseshoe. “As part of Accenture, we will bring increased scale and combined expertise to help clients put in place next generation supply chain and fulfillment strategies that meet customer expectations and support business growth.”
Accenture's acquisition of Blue Horseshoe is subject to customary closing conditions.