Brexit

The availability of UK warehousing stock could come under increased pressure should the UK default to WTO rules in the wake of failed Brexit negotiations.

Just-in-time supply chains, particularly for automotive spare parts - including trucks and vans - would seek to mitigate import delays and trade tariffs of between 2.5% and 4.5% on individual items by keeping more stock in the UK.

Parts ranging from truck tyres to brake pads would all be affected under WTO rules and suppliers would seek to increase UK inventory by holding items within UK borders.

Speaking at the BT Fleet Solutions Forum at BT Tower today (14 September) Julia Saini, global vice-president for mobility at Frost and Sullivan, said that there was potential for shortages of time-critical parts after Brexit if WTO rules are adopted.

"Distributors could spend on additional warehousing stock to mitigate these delays," she told delegates. "And suppliers will have to absorb price increases, either through impact on profit margins or passing the costs on to customers."

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