How to mitigate the impact of Brexit through sound procurement practice

While uncertainty about the UK’s decision to leave the European Union may be abating, the slew of changes it entails in everything from exchange rates and laws governing contracts to logistics and trade rules are forcing companies to reconsider their procurement strategies.

Category managers and procurement officers that are still grappling with questions surrounding its impact on sourcing, pricing and supplier relationships need to make sure they’re on top of things for the changes ahead.

Brexit’s impact: challenges procurement managers must contend with

Europe will remain the UK’s largest trading partner in short to mid-term, even if the UK leaves the EU. However, procurement trends may change in the long run, and UK-based companies may begin procuring certain commodities from other low-cost destinations.

It’s critical for procurement officers to account for the inevitable regulatory and foreign exchange changes, planning ahead with alternate strategies for purchasing in and out of the UK. Category managers are facing a lot of uncertainties related to Brexit, including: