Prepare for Change

Digitizing for SCM success

Automotive supply chains are under pressure as customer demands and regulation drive transformation. Will this mean border delays? Here's how to keep things rolling.

Primed for change

The world's automotive industry is about to enter a period of wide-ranging and transformative change and companies looking to have a successful, long-term future need to get key strategic decisions right in the next decade. 

Those are some of the key  findings in a report, “The road to 2020 and beyond: What’s driving the global automotive industry?”  from McKinsey & Co., the prestigious global consulting firm. 

It’s certainly a great challenge to stay competitive in this rapidly changing marketplace. In fact, there are four key challenges dominating the game: Complexity and cost pressure; diverging markets; digital demands, and the shifting industry landscape.

Brexit uncertainty

So, of course, the current global trade uncertainty under Brexit and the upcoming HMRC system transition from CHIEF to CDS add much undesired pressure for UK business leaders in this environment. 

The massive HMRC IT project has been in the planning long before the EU referendum even took place and the new customs system is scheduled to replace the current one in a phased approach starting August.

This involves much work for your in-house IT and customs teams to ensure a smooth system transition. 

And with much speculation about the new system’s capability to manage a massive increase in customs declarations following Brexit, it also adds to your list of business risks to mitigate.

Brexit itself continues to feed uncertainty, too. Discussions about two possible models – Customs Partnership or Maximum Facilitation – did not deliver any progress for businesses. 

And when the UK proposal was published in the Policy Paper of 12th July (following media reports about the EU response twelve days later) it  made it clear that we can expect more rounds of negotiations.

Here's what you can do

What does all this mean for you? 

That you need to make provisions for new duties on imports and exports.  The choice is between being prepared or facing delays at the border.

With a flexible IT landscape for customs management, your global trade operation is ready to adapt to new requirements at any time. 

Integrated global trade software lets you can manage your imports and exports in line with latest customs procedures – before and after Brexit and the HMRC system change.

This not only mitigates your risks and caters for smooth deliveries across borders, but it also pays off for your digitisation goals across the business and puts you in a better position to tackle competition in your transforming marketplace.

It’s high time to digitize your customs management

Go to AEB Brexit Tool Kit for Traders to avoid disruptions