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brexitOn June 24, 2016, the UK decided to exit the European Union (EU). Impacts are to come, but let’s evaluate what those could be in term of supply chain.


  1. Regulations

With the UK exiting the EU, the country will have to write and pass new regulations and laws regarding, among other things, the import and export of goods into and out of the UK, trade compliance and agreements, tax standpoints, and tariffs.

  1. Economy

We have already seen the currency depreciation hit the market. Due to this unstable and weak economy, the UK may have to increase the selling price of their products and goods.

In addition, UK firms may see a decrease in productivity as a result of a decrease in the workforce coming from Eastern European countries, who were drawn to the UK due to its membership in the EU.

  1. A port of transit

For several countries, including the US and Canada, the UK was a good port of entry to get into the EU. Over 40% of the shipping traffic coming into UK ports was intended for the EU. The UK is also the largest market for exports of food and non-alcoholic beverages, but the Brexit might influence this.

  1. New agreements

The EU secured free trade agreement with 53 countries, but these and any other agreements signed with UK companies will need to be reviewed and renegotiated when the new regulation is put in place.

  1. Dual sourcing

New rules at the border may create delays when exporting from or importing into the UK. Having dual sourcing for all of your components has always been important, but now you may want to find two sources that are not both located in the UK.

Mapping your entire supply chain will help you identify your partners located in the UK and help address potential issues that could emerge from the Brexit.

Transparency-One helps retailers, manufacturers, and suppliers to identify their entire supply chain from source to store. Our strong search functionality lets you identify all of your network partners and facilities located in one country in only 3 clicks:

  1. Click on Search supply chain
  2. Enter the country
  3. Export your supply chains impacted by that country

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