Supply chain certainty

The UK is scheduled to leave the EU on 31st January 2020. While the specific outcomes of Brexit are not yet known, with CHEP’s superior scale and depth of expertise, we are well positioned to support customers through any required changes and resulting periods of transition.

We have been proactively engaging our customers both in the UK and EU to ensure we can support them with their Brexit mitigation plans. We are are actively analyzing and preparing for any potential changes so that we will be able to serve our customers and industry in the future. Based on the different potential outcomes of Brexit negotiations, we are conducting scenario planning to more deeply understand the impacts and resulting actions we may need to take within our own supply chain and business operations.

We recommend that our customers identify how Brexit plans might affect their requirements - specifically in relation to pallet volumes and specifications - and let us know as quickly as possible so that we can work together to minimise any potential impact

How is CHEP preparing for Brexit

Political uncertainty remains very high. As we get closer to 31st January 2020, none of the potential outcome scenarios clearly has the highest probability of taking place. CHEP will continue to mitigate against a No-Deal Brexit in business-critical areas until a No-Deal Brexit is procedurally ruled out.  A No-Deal would introduce World Trade Organization (WTO) rules.

Since the Brexit referendum, CHEP has put a project plan in place to proactively minimize disruption to the business and our customers:

  • CHEP has appointed a Brexit Lead Director to coordinate all Brexit activities for the Company.  We have also set up a Brexit taskforce covering all key areas of the business and a Steering Committee overseeing progress and making business critical decisions. 
  • CHEP is actively working to raise awareness around critical supply chain impacts with various government and industry bodies. We will continue collaborating with our customers, our industry, and the UK and European governments in an effort to avoid negative impacts and unnecessary costs for supply chains, which could ultimately increase the cost of food and other goods for consumers. Specifically, we are focused on ensuring that the free and unencumbered movement of goods is facilitated, that unnecessary complexity and costs for supply chains, businesses, and consumers are avoided, and that environmental concerns are appropriately addressed. 
Preparing for Brexit
Preparing for Brexit

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