INDUSTRY FOCUS
Supply chain delays will cause stock shortages and inflated shop prices, warns new report
Delays getting goods into the UK since the end of the Brexit transition period at the start of the year are likely to result in stock shortages for retailers and inflated shop prices for consumers, according to a new report.
The warning follows a survey of 350 UK supply chain managers which found that almost two out of three have experienced delays of at least two to three days getting goods into the country.
The main reason is the time taken for customs officials to work through new post-Brexit paperwork, said the Chartered Institute of Procurement & Supply (CIPS).
The situation is only slightly better for exports, with 44 per cent experiencing delays of at least two to three days getting goods into the EU, the report said.
The CIPS said it has evidence of drivers being turned away at or before the border for not having the correct paperwork.
The delays come despite the fact that many new import certifications are still yet to come into force, the report said.
“We are well into the second month of the new arrangements and the hope that delays at the border would reduce as freight volumes returned to normal and customs systems became used to the new processes has not come to pass,” CIPS’s economist John Glen said.
“What is even more concerning is that the delays are continuing to get longer, putting more and more pressure on the UK’s supply chains and affecting the timely delivery of much-needed goods.
“The paperwork required at the border is not going to change anytime soon, so we should brace ourselves for these delays to continue for at least the next few months.
“New requirements for import certifications are also rapidly approaching and these will only add to the paperwork required, causing further delays for businesses.
“The knock-on impact of these delays will trickle far down the supply chain and ultimately result in stock shortages and inflated prices for consumers.”
