Stockpiling for Post-Brexit Britain - Azzure IT
Azzure IT

Stockpiling for Post-Brexit Britain

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The United Kingdom has been very hard to predict for the past few years. Fluctuating weather, changing Prime Ministers and elections, votes and referendums seemingly every week for the past few years. The biggest of these is undoubtedly Brexit.

For many businesses during times of uncertainty, especially in the manufacturing, distribution and warehousing sectors, the go-to strategy is always stockpiling resources. It offers re-assurance that no matter what the outcome, our business won’t be that badly affected because we bought all of our stock before anything happened.

This has almost certainly been the case since the announcement of Britain’s impending divorce from the European Union, with The Guardian reporting that the UK has recorded a record good trade deficit in January and February of 2019, as the country brought in more from overseas than it sold, widening the total trade deficit for good and services by £5.5 billion. The outcome of this stockpiling has been very mixed. Firstly, Britain’s economy has strengthened in the first three months of the year, with growth of 0.5% being helped by the high rate of stockpiling, a significant improvement on the 0.2% in the previous three months.

However, the uncertainty around Brexit and the impending “no-deal” scenario has already had a great impact in March, with these sectors going down 0.1% month by month.

If this sounds familiar, and could be happening to your business, it’s critical to now ask yourself:

“I’ve got all my stock ready, now… what’s next?”

A problem for any inventory, warehousing or distribution business when they sit on a lot of stock is them losing money through not being able to sell all of the stock they have hoarded, and it costing money to keep it in a warehouse, and paying their staff to manage it.

Normally, businesses will be able to predict their working year, and identify the peaks and troughs, and when they will need more or less stock to meet their customers demands, and not feel overwhelmed or overstocked. This has been slightly thrown out of the loop with the uncertainty around Brexit, with many businesses buying in excess stock to overcome potential tariffs or lack of supply when the UK leaves the EU. This has caused quite significant problems, because businesses that normally do not hold a lot of stock are now struggling to sell it on, and is causing them to quite seriously leak money maintaining it, and often losing track of what has been bought, when it was bought, where it is and if it has been sold or not.

This leads to a flurry of problems, such as difficulty when forecasting budgets as you can not accurately predict your sales, becoming overwhelmed with the sheer amount of unsold stock in your warehouse, and not being able to make important decisions as you do not have access to the latest data about your business.

Battling these problems can be very difficult if your business is working on an insufficient stock management system or even multiple disparate systems, not letting you see all your information in one place. Your business could also be keeping all these important figures on spreadsheets, or maybe just in someone’s head!

So, how can these problems be tackled?

To even begin tackling the problem of excess stock and trying to sell it on, your business needs to have all the right information available, at the touch of a button. A Microsoft Dynamics Business Central system can help your business intelligently manage it’s inventory and supply chain, making sure you know exactly what is in your warehouse, how much stock you have and where it is.

It can simplify the way your business looks after your inventory, and lets you accurately predict what you’ll be selling, when you’ll be selling it, and where it will be going to. It also shows you exactly how much you paid for it, and how much you will be selling it for, letting you quickly and accurately work out your profit, margin and other sales figures. This lets your business make decisions with the most accurate, up to date data available, restoring confidence and accuracy back into your business.

To find out more about how a Business Central system can help your business prepare for a post-Brexit Britain, click here.

CONTACT

Azzure IT
10 Europa View, Sheffield Business Park, Sheffield, S9 1XH, UK

t. 0345 467 9950
e. enquiries@azzure-it.com

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