Press Release – 24 September 2019
To all our valued partners and customers,
With the new Brexit date fast approaching, we wanted to reach out to all customers and partners to provide an update of the planning preparations we’re making to maintain service and lead times – irrespective of the outcome on 31st October.
As a UK manufacturer, we have taken all necessary precautions to prepare for the eventuality of a no-deal Brexit. Such significant political change does present unknowns however, as was the case of the 31st March exit date, the only potential short-term risk we see is the potential border delay for goods coming into the UK.
A large proportion of our key supply base is within the UK and we have verified with suppliers that they have established contingency plans to ensure continuity of supply. We have identified a very small number of ‘at risk’ component suppliers within the EU and purchased additional stock to ensure continuity of supply in the event of a no-deal Brexit. In addition to this, we have called in a stock surplus from suppliers outside of the EU to guard against potential delays at the ports.
INDO Lighting also exports to Europe and, as such, we have ensured our logistics partners are geared up to handle a no-deal Brexit, which includes using alternative ports and in extreme situations, using alternative modes of freight to ensure continuity of supply.
Regarding the customs union, the normal WTO tariff rates applied to products we supply should not incur a duty rate higher than 2.7%, which has been offset by the weakening of the GBP and so will not impact the European landed prices we have previously provided.
As per our standard practice, we work closely with customers to ensure production and delivery schedules are tailored to meet their needs. We maintain regular communication on delivery dates and our aim is always to ensure the agreed delivery schedule is not only met, but improved upon whenever the program allows us to support early completion of contracted projects and roll-outs. Our logistics and warehousing lead has over 23 years’ experience and ensured we are well-positioned to optimise inventory control and movement. We have increased our storage capacity by 35% to enable healthy stocks at component and finished product level, as required for customer demand.
If there is no resolution to the ongoing Brexit negotiations, we would expect our customers to also be implementing their own contingency plans for supply. If customers would like to secure stock by placing purchase orders with INDO during September/October for call-off delivery later in the financial year, we would be very happy to accommodate that.
We are doing everything possible to avoid an increase in product prices, however further decline in the value of sterling may be realised in the event of a no-deal Brexit and we are monitoring any price points of components and products bought in Euro or US Dollars.
It is our intention to continue offering a high standard of customer service with regards to lead time, availability and competitively priced products. We would like to thank all our customers for their support of a UK business now and in the future.
If you have any queries, or would like to discuss anything regarding our Brexit planning in more detail, please do get in touch