There have been chronic shortages in the UK, severely affecting the supply chain. And the cause of that problem is argued to be Brexit. The government says that all these shortages and crises are the after-effects of the pandemic. But the industry bosses have something else to say in this regard. According to them, this cliff edge is caused by Brexit.

The Brexit’s Policy’s consequences are now noticeable in the United Kingdom. Due to the warehouse shortages, supply is being heavily affected, threatening the logistics sector and disrupting the already strained supply chain. The reason why Brexit is now affecting the logistics chain is evident. As the Covid crisis dissipates and normality is being restored, the actual results of this new commercial reality affecting trade between the United Kingdom and the European Union are now apparent.

·      A look into the Warehousing Crisis caused by Brexit:

It is suspected that the United Kingdom can run out of space within a year after the increase in online shopping and supply chain disruption when the demand increased suddenly due to the pandemic.

There is a fall in the amount of available warehouse space. It now stands at the lowest level since it was first tracked in 2009. According to the Property expert Mr Cushman and Wakefield, The available warehouse space has fallen below 50 m square feet.

Mr Shane Brennan, The Chief Executive of the cold chain federation that represents the chilled and ambient food warehousing owners, says that it might have been the pandemic that caused the shortage problem. Still, Brexit is limiting their options for solutions.

Due to Brexit policies, the lead times are being extended. There is more paperwork than before, due to which the supply chain is being disrupted. Extra duty charges are being applied on the goods and some European delivery companies aren’t even delivering to the UK as their drivers get held up at the custom. All these problems are causing severe discrepancies in the supply chain due to which the warehouses stay packed up.

The director of corporate services at Jersey-based consultancy Hawksford, Sian Huish, says that during the Brexit negotiations, the stockpiling of goods and the pandemic has led some sectors in the industry to require space to hold more products for more extended periods. Although the demand is very high, the suppliers cannot meet this demand because of the restrictions.

The Pressure of Pandemic on the companies, which led them to increase their inventory to handle short term disruptions, was already an issue, but Brexit policies have increased the worries of the suppliers and retailers, making them reconsider their warehousing strategies.

The pressure on companies to increase inventory to handle short-term disruptions due to COVID-19 and Brexit’s policies are leading many to reconsider their warehousing strategies. Moving ahead, finance experts will face growing stress to balance customers’ expectations of delivery-on-demand with the cost of supplying it.

·      Beware Brexit:

Another layer of pressure added to the warehousing market is the uncertainty around the United Kingdom’s exit from the European Union single market and the customs union. The Brexit-related delays will cause the companies to build up there to inventory to maintain their lead times. Not only that, but the financial professionals need to stay ready to balance the cost of storing more inventory with managing disruption as a result of this new regime.

·      New model consideration for warehousing:

The associate professor at the University Of Bath School of management, Vaggelis Giannikas, has mentioned four ways in which different firms can tackle their warehousing issues.

The first is the increase of e-commerce and home delivery systems, which means that warehouses will be operated as fulfilment centres rather than storage spaces. It will also change the cost criteria as there would be different people, technology equipment, and staff required for each type of warehouse.

The second solution is that the companies can utilise the present area occupied by retail stores that are not doing a lot of business as temporary storage facilities to cover short-term needs or strengthen domestic shipping inside cities.

Thirdly, the companies can utilise warehousing services. Many outside services like Western Industrial Business Interiors can provide you with warehouses. This outsourcing to a third party can be beneficial as they may have the expertise and offer generous costs with higher flexibility.

And lastly, the companies can also consider shared warehousing space, mainly for manufacturers who store foods for their clients.

·      Conclusion:

With the increase in online retail sales, businesses need to invest more in their physical warehouse’s space to store products. While it is good news for eCommerce retailers, it is causing trouble for the UK. And the more pressing pressure on the industrial space causing the UK warehouse crisis is Brexit. A scarcity of space leaves companies facing a worrying future, particularly as consumers call for ever more personalised and instantaneous shipping options.

There are many reasons why succession planning in a business doesn’t always go to plan. This could be that there is a limited pool of qualified internal candidates, poor advice from key advisors, or a reluctance to take on the task in general.

Fears around succession planning come – rightfully – more often from smaller or mid-size companies. Given the current economic realities, many small businesses are focusing more on “keeping the lights on” than creating a succession plan. It’s with these kind of situations, you may want to do some research into what approach works for your particular business. Either way, as studies suggest, failing to address succession needs can have dire consequences.

To carry out a succession plan effectively, consider these stages listed and, in doing so, take the steps to preserve the continuity of your company.

STAGE 1 – Start at the top

C-Level engagement is crucial to ensuring company confidence is behind the succession process. CEOs, CFOs, COOS and all other C-Level executives need to set the stage for the process – this will guarantee that employees feel reassured and positive throughout the process (which won’t just happen overnight, but may possibly take years to plan and enact).

Without executive leadership, most succession strategies fail to get going. Develop a business case for succession planning which sets out a vision and a long-term plan for the business.

Alongside senior executives should also be the HR department, who can ensure that a fine balance is maintained throughout the process between a data-driven and a people-centric approach.

STAGE 2 – Your approach to the process

The best succession plan is multi-level. Not only does it set out arrangements for senior and executive roles, but also for critical roles that are several levels below the most senior roles in the company.

Similarly, an approach that considers unconscious bias is also a strong one. Women and culturally diverse employees traditionally (but not always) have less experience, and so try and go about your plan with gender-neutral and race-neutral standards. This will encourage inclusion and provide support to those employees that may desire extra training.

Lastly, think also about identifying your “at risk” roles which can be given extra thought when creating your succession plan.

STAGE 3 – Develop potential leaders

Succession planning presents opportunities for employees (or next-generation leaders, if you are a family-run business) at your company to take on more responsibility. They can step up to the mark on certain tasks that you, as a leader, may have reverted away from whilst focusing on your succession plan.

Ensure that you consider your talent within the company before seeking external candidates. Apply a rigorous assessment to your succession plan to determine whether you have the internal, high-potential candidates. This saves time and money down the line.

If this does not work out in your favour, supplementing with outside expertise is also beneficial as it brings fresh skills and new visions.

STAGE 4 – Document the process

Throughout the process, make sure to note down each action and step you have taken, so that, when the process is over, you have a depth of information ready to inform future processes.

It is especially important to remember the particular demands of each key position – not every position requires the same approach, and you may be surprised that positions several levels below the C-Level actually take more time and dedication to fill.

When it comes to supply chain planning solutions, each business owner has their own needs. Some are looking for a simple but effective solution that doesn’t require extensive training or outside support, and others are looking for something with every bell and whistle included in the price.

What is a supply chain plan?

A supply chain is a network of people and systems that work together to bring your product or service to market. It starts with the raw materials and continues through every step until it reaches the consumer, including manufacturing, warehousing, transportation, distribution, and storage.

It includes planning for how much inventory is needed at every step along the way and figuring out how that product will get where it needs to go. For example, how much should you order? Who will bring it where? How are they getting there?

With so many options on the market, though, it can be hard to find one product that covers all of your bases.

Below are features to look for before settling for a supply chain plan;

1. Forecasting

Forecasting is where most planning solutions fail; they can pull data but lack the precision that business owners need. If you’re looking for more advanced forecasting software, it’s essential to consider what forecast solutions your business needs.

For example, if you’re a retailer with slow seasons and are open year-round, you will need a forecasting solution to manage slow sales during off-peak hours. If you’re in the foodservice industry (i.e., restaurant or hotel), taste, health, and safety are big issues for this type of business; therefore, a forecasting solution that can accommodate changes quickly may be a better choice.

2. Customization

Will your solution allow you to customize reports? Many businesses come in under budget when it comes to purchasing reports. A good plan should include many different standard reports and give users the ability to create their custom reports.

3. Transportation Management

Do you have enough space on your truck or van for all of your products? Are you adding new vehicles or expanding your fleet due to new business? If so, you need a transportation management system that can help you maximize space and improve operations.

4. Collaboration

Collaborative planning goes beyond just pulling data and delivering reports: it includes sharing that data, allowing planners and account managers to view relevant information and work together.

5. Advanced Reporting

Does your solution allow for easy report customization? Will the reports you receive be customizable as well? If not, look for a solution that provides flexible reporting options or data visualization. It’s essential to consider the capabilities of your supply chain planners and how they will use the software before making your purchase decision.

6. Alerts

Alerts are helpful for ongoing improvement. While standard alerts may be included in your solution, look for additional alerts that trigger when issues arise. These alerts should also go beyond the basics of sending out an email or text message to provide deeper analysis and insights into problems.

As you can see, there are many factors to consider when choosing a supply chain planning solution. Keep these tips in mind to make sure you’re investing in the best possible tool for your business.

Why Technology Should be the CFO’s Best Friend

The role of the CFO has broadened significantly in the last 20 years. It’s no longer enough to have an accountancy degree and experience of raising funds. Today, you need to have fingers in many more pies, building a holistic view of your organisation. And, of course, one of those pies is technology.  Understanding how tech can be used to enhance the performance of the business you work for, as well as the customer experience and perception, is integral to executing your role fully. That includes a whole arsenal of technological tools and applications. From payment gateways to RPAs. And to do that you need to develop a digital mindset.

The power of the digital mindset

Developing a digital mindset is the key to understanding where technology can be used to full effect within your business. Not just through the onboarding of individual products, but understanding the full potential benefits and impacts of comprehensive technical integration. And how those products can overcome the challenges your company faces. For the creation of a unified digital strategy, it’s imperative that you understand the potential for interconnectivity between the key technological components within your business – big data, cloud, automation – and maximise that potential as best you can. Because it can have a serious impact upon your ability to raise investment.

How can technology be used to supercharge fundraising efforts?

As we move into 2022, CFOs have various tech avenues at their disposal. Tools that can help with planning, strategy, and productivity. Data collation, assessment, and management tools. And tools that can help with the identification of unexpected opportunities.

Data science

Every successful fundraising initiative comes down to data. Data science gives you the power to build systems and extract data for insight-driven decision making. With the right data to hand, you have the evidence you need to influence strategy and improve your company’s ‘kerb appeal’. While investors have the evidence they need to make a positive investment decision.

Robotic process automation (RPA)

In finance, RPA relates to the use of software to automate key tasks and processes. This might be financial statement preparation, or account reconciliation. It means that essential – yet often tedious – tasks can be accurately and effectively managed without taking up additional manhours. Preventing burnout in your workforce, and saving your business unnecessary expenditure as your employees are using their time more productively elsewhere. It can also help to reduce costly mistakes, as people are far more likely to enter data inaccurately than an RPA programme. Together, these factors make your business a far more attractive proposition for investors.

Artificial intelligence (AI)

Using machine learning to process and identify data patterns, AI has significant reach for the CFO. It can enhance security measures, detect and prevent fraud, free employees from repetitive tasks, predict cashflow, facilitate lending, build predictive models, and protect data, among other things. Its goal is time saving and efficiency increasing. Its bi-product is increased data insights for minimal investment. Allowing you to present the best possible data to potential investors.

Internet of Things (IoT)

The IoT works in tandem with all of the above applications, and much more besides. Its remit is the gathering and transferal of data, from smart lighting and other office sensors, to whole city management. And in finance it can be used for the processing of large quantities of data. Both historical and contemporary. Resulting in better decision-making, better service, and better planning. IoT tech is also almost infinitely scalable. And scalability is a big plus on any investor’s checklist.

The potential for technology to support CFOs is increasing every day. And its capacity lies in its ability to make your work and your business more effectual. Of course, it can streamline processes – that’s what technology has always done. But it can also provide incomparable insights which can not only allow your business to grow. But can give your investors the confidence they need to put their money in your hands.