Keeping calm and carrying on with Logistics during Brexit
Financial markets hate surprises. Media fueled fear has been whipped up with headlines like “crisis” and “chaos” due to the recent UK decision to leave the European Union.
The pound plummeted and trillions of dollars have been wiped off global share markets overnight.
However, this isn’t the first time that this has happened. Many of us will grit out teeth at the mention of the recent Global Financial Crisis, the dotcom crash, the Asian Financial Crisis – get the picture?
It is worth noting, as I write this that major publications seem to be outlining business as usual in the Supply Chain and Logistics Sectors. The Wall Street Journal , for example, details that:
- Brompton Bicycling has benefited from the plunging pound as they can now be more competitive in international markets.
- Honeywell International have just invested $1.5 Billion in warehouse automation specialist Intelligrated. In fact, this purchase comes of the back of a global trend towards of growing demand in the logistics, warehouse and fulfillment solutions sector with a staggering $8.6 Billion being the combined value of three big acquisitions in this sector in the past two months!
There are clearly still great things happening, despite all the doom and gloom.
We have been here before. Brexit is just the latest bump in the road of international markets, similar to other volatile markers that we have experienced in the last thirty years.
The way to tackle these extremes is by not rushing into anything. Here are some steps that will allow you to assess the best way forward before deciding what is best for your company’s logistics strategy in these Brexiting times.
1. Don’t Panic
Yes we have all been taken by surprise by what has happened. No one actually expected the UK to leave but the one thing we have learnt by watching markets over the years is that they overreact in a crisis. The better approach therefore is to hold your position and keep a close eye on things until things settle down in the weeks ahead.
2. Think Long-term
Once again, let’s go back to our history lessons which show that markets move in cycles. Those who stick it out will benefit in a recovering market.
3. Review your Logistics Strategy
Times like these can through up new challenges and opportunities. They therefore provide a great time to review your strategy and whether it is meeting your company needs. Is your risk strategy still adequate? Are you on track to still meet your goals despite the setback? How are your competitors reacting?
It is also a good time to think about how you will cope if there are future downturns with the aim of assessing and protecting your supply and customer base.
5. Take advantage of lower prices and other opportunities
A fall can be an opportunity to gain market ground and procure greater value, if you have the appetite for it.
6. Seek Advice
No doubt in the weeks ahead as governments meet to discuss the issues there will be various changes that fall out of the Brexit result that will directly implicate areas such as trade and investment.
If after keeping a close eye on developments you are not sure of how to proceed, it’s a good idea to reach out for advice from local government or professional bodies on what the various changes that no doubt shake out of this will be and how they are going to implicate your business.
Now take a deep breath and let’s have a cup of tea shall we?