Brexit 2022: Adapt your work processes by digitising your supply chain

When the Brexit transition period ended in January 2021, businesses suffered unprecedented levels of disruptions. Companies battled against border delays, extensive paperwork, and rising costs. What’s more, these challenges are predicted to worsen this year with the 2022 customs changes.

Back in November we surveyed supply chain leaders and found that less than 8% of supply chain professionals said that they were ready to tackle the next wave of changes in 2022.?

In response to this, we’ve created ‘The Supply Chain Leader’s Guide to Brexit’ where we delve into how businesses can beat customs chaos.?

We’re not over the worst of it yet??

The changes that have come in from 1st January 2022 will have a bigger impact on those that were introduced in January 2021. Businesses will face inevitable delays in the supply chain due to a backlog of paperwork as the volume of customs declarations is predicted to increase from 55 million to 270 million, putting greater pressure on HM Revenue and Customs (HMRC).

However, these are not the only changes that are expected to happen this year. Goods such as products of animal origin and plant products will be subject to new regulations under the EU-UK Trade Cooperation Agreement. Products will have to go through specific ports with border control posts, therefore businesses may need to change their shipping routes.

Businesses are also faced with the challenge of migration to the new Customs Declarations System (CDS), the new import/export system replacing CHIEF. The new system requires around a hundred additional data sets compared to the current system. Unless this is accounted for, the processing time will also take four times longer, which will add further delays in the supply chain.?

With all of these challenges in mind, businesses need to adapt their work processes to navigate the new customs challenges. One way to start is digitising their supply chain processes to create a business advantage.?

From accurate reporting to efficient workflows, here are some of the ways digitisation and automation can help businesses navigate the new Brexit and customs challenges.?

Handling large volumes of data

The new regulations in 2022 will require businesses to handle even larger data sets and provide more documents for customs. Therefore, manual processes will be unable to keep up with the volume of data required.?

Automating data entry in supply chain systems will give businesses the ability to handle large data sets from across the supply chain, from warehouse inventory to customs tariffs. The data can be held in one place with any changes being made automatically on the system, without having to manually adjust other information to accommodate.?

Moreover, automating data in supply chain systems allows companies to pull data from various sources and generate reports quickly. This is time-efficient and reduces the risk of data errors which is beneficial when it comes to planning out supply chain strategies. Businesses can therefore be prepared for any incoming delays and pressures from the customs changes in 2022.?

Better data means better decisions?

With more rigorous regulations coming into effect this year, it is important for supply chain leaders to understand what products are coming in, any updates on the timing of their shipments, and how they are being moved across borders.?

Digitising supply chain processes allows supply chain leaders to gain greater visibility across the whole of the supply chain. By connecting data on purchase orders, shipments and products on a digitised system, businesses can create a centralised location for employees to access information from all areas of the business. The range of data can cover live SKU visibility, inventory stock levels, updates at borders, and many more.?

The visibility that businesses receive of their data is in real time, providing their supply chain leaders with the ability to react to any disruptions and make cost-saving decisions promptly. By automating the sharing of supply chain data, businesses will be given fast access to accurate reporting instead of having to manually process heavy loads of data from across the supply chain. This can give businesses valuable insights to make timely and well-informed decisions.?

Clear collaboration?

To ensure the efficient flow of goods and data across the supply chain, it is important for teams to stay aligned and communicate effectively. This is even more crucial during times of uncertainty so teams can stay prepared against sudden delays and disruptions. As new customs changes are introduced this year, it is essential for everyone to be on the same page in order to mitigate errors and confusion.?

Digitising supply chain work processes can help teams collaborate by ensuring that everyone has access to the right files, data and information. This can be achieved by using a digital platform, as different teams can share and access the details they need from other parts of the business at the same time and from anywhere in the world.?

This can give supply chain teams the advantage of understanding and navigating the new customs changes through transparent and shared data. Stakeholders from across the supply chain can align on goals, coordinate workflows, track progress of freight, allocate budgets and meet arrival deadlines to prevent any risks of fines or delays at borders.?

Digitise your supply chain work processes today

Businesses are already figuring out how to rework their processes to fit in with the customs changes from last year and the pressure facing importers and exporters are set to rise.?

2022 will be the year when new customs controls will fully come into effect and even the best prepared may find themselves battling against delays at the border.?

Digitising your supply chain processes can help mitigate these risks by giving full visibility and allowing cross collaboration across the supply chain.?

If you would like to discuss this topic further and understand how digitising your supply chain processes can benefit your business please feel free to get in touch.