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Supply chain issues and Brexit planning statement 

As you are aware the UK is currently voting on a withdrawal agreement from the EU single market which if not accepted may involve leaving the single market and customs union on March 29th 2019, with or without a transitional period. A No Deal outcome will lead to a significant event in terms of customs, taxes, Finance,Operations, employees, Products, Regulations and Supply chain. All future trade from that point would be on World Trade Organisation (WTO) terms and have implications on the existing supply of all imported goods and services. 

Camlab have assessed the risk of this scenario to have increased and with an initial adverse supply chain impact that will affect our customers and suppliers. We are continuing to communicate with our Suppliers and have recommended that they also hold additional buffer stocks to cover such an eventuality. We are also currently communicating with all of our staff regarding any residency issues for them and their families and we will be providing financial assistance with citizenship applications and visas to ensure continuity of employment and customer service. 

See our Brexit Readiness Questionnaire results here

We have now instigated our Brexit mitigation plans for a ‘no deal scenario’ to try to minimise the supply chain impact for our customers on critical products pre and post the Brexit deadline. We have reviewed the customs compliance process and are exploring accreditation to become an Authorised Economic Operator (AEO) to allow a smooth process and HMRC reporting. We are already a long term experienced importer and exporter of goods to and from the UK ,however we will also provide additional resources and instigate additional skills training for our staff to help facilitate this process. 

We are therefore anticipating some additional delays at customs border combined with extended delivery periods on imported goods due to the potential lack of availability of transportation from a number of Ports. We are reviewing our stock-holding now, particularly on critical products and spare parts for maintenance and repair to manage these anticipated extended delivery periods. We are expecting potential significant market volatility over the coming months, which could adversely affect the current UK economic and supply chain environment. 

Where possible we are identifying alternative manufacturer’s products for our current fast moving critical products and will provide samples to customers to pre-approve these backup alternative items critical for their work if required, prior to Brexit. If however any customers who are not currently purchasing their critical items from us and wish to consider Camlab as a secondary or dual-source for these goods we would also be happy to discuss their requirements in our stock planning process at this stage to see what we can do to ensure they will also have access to an alternative provider. We have assessed that there is also likely to be an adverse impact on both currency and costs of imports over the coming months and our suppliers may also increase prices to customers. We wish to minimise the impact of this by increasing our stock holding and are encouraging our customer base to pre-order critical items so this can be included in our planning. This will reduce the cost impact but will require additional working capital investment by Camlab. 

To do this effectively we will need to work closely with both our suppliers and customers to achieve the correct stock holding balance in the supply chain in a potentially difficult and uncertain volatile trading environment. We are aware that we may find abnormal quantities are purchased prior to Brexit or ‘panic buying’ may take place causing a run on certain items and a ‘stock out’ situation on critical products such as Personal Protective Equipment (PPE), Laboratory consumables/ reagents and kits. We will endeavour to manage our stock accordingly for those customers who have engaged with us in the mitigation process; however we may not be able to fulfil all orders in such a situation without prior knowledge of their usage. 

To assist this process we are happy to receive or provide (if needed) customers annual usage data to assess their requirements during this period. Whilst we cannot predict the exact reaction of the laboratory market to a No deal Brexit, we wish to re-assure customers that we are doing what we can to ensure we can provide continuity of supply and enter a constructive dialogue with both our customers. We are asking our suppliers to let us know which products are critical to their business or research process and where possible to plan forward delivery of these items and help us to mitigate this potential supply chain risk as a consequence. 

We are now encouraging our customers to place forward orders that allow us to ensure continuity of supply during the Brexit period. 

Please contact our Brexit mitigation team on or call Chris Rowlands directly on 01954 233 127

Alternatively if you would like to start discussions with our Brexit mitigation team you can arrange a call back to discuss reserving stock or setting up alternative supply.

Request a Brexit Pack or arrange a Forward Order

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