It is still difficult
to predict exactly what the potential effects of Brexit may be as, even at this
late stage, we do not yet know the outcome of the Brexit process. However the
main issue that we anticipate is the extended delivery times for goods, caused
by potential hold ups in clearing customs. These potential delays could in turn
lead to some issues with product availability from our warehouses. Direct
deliveries from paper mills could also be affected by extended or unreliable delivery
times, again due to potential delays due to customs clearance.
Printing Cafe Group
does not anticipate any problems with ordering enough paper to satisfy demand, but
may experience difficulties in deliveries not arriving on time, which may be
beyond our and our suppliers’ ability to control. Premier is however doing what
we can to mitigate any such risks.
Many of our suppliers
are now actively looking at their supply chain arrangements to see how they can
mitigate the effects of Brexit although, at this time, their plans are still
being formulated. Premier is in discussion with them to fully understand what
actions they are taking to reduce any customs delays, such as signing up for
AEO (Authorised Economic Operator) status, which we have been advised could
help reduce delays at UK customs.
To further mitigate
any risk and reduce effects of Brexit, Printing Cafe has, since March 2019,
engaged the services of specialist shipping agents, with considerable experience
in handling paper imports, to expedite our deliveries through all British
ports.
We have also analysed
which of our continental suppliers are operating a “roll on roll off” distribution
model as this is where potential customs delays are most likely to occur. Printing
Cafe Group has built stocks of key products delivered by this method in order
to help mitigate the effects of unreliable delivery times.
Printing Cafe Group
also buys paper from long distance suppliers who operate UK wharf facilities. This
is likely to give some insulation against customs delays and unreliable deliveries;
however, these facilities only cover part of our business and do not provide a
full solution to potential Brexit issues.
Another
action that we have taken is to expand our local warehousing to accommodate
higher stock levels in anticipation of some post Brexit friction.
Examples
of this activity are as follows:
Leeds
- Doubled warehouse capacity
and we are looking for further expansion opportunities.
Southampton - Doubled our capacity
Bristol - New 15,000 sq ft warehouse
Leicester
has been reconfigured
to give extra capacity
Castle Donington - has been reconfigured to give extra
capacity
Langley
capacity has trebled
in size
Dartford -
New high-bay warehouse giving more than three times the capacity opening in
September 2019
At
Premier we are doing as much as we can to anticipate and mitigate the potential
Brexit effects but we still find ourselves alongside the rest of British
Industry in being unsure as to what exactly these effects will be. However
please be assured that we are actively putting measures in place to protect the
vital supply chain of paper products that is so important to both our
businesses.
