Whilst negotiations are ongoing between the UK government and the European Union, many businesses are still unsure about the steps needed to mitigate procurement risks associated with Brexit. Download the full article and know the steps that companies can take to address the procurement risks.
Brexit has brought about one of the biggest changes to global trading rules over the last years. It is impacting the procurement processes and supply chains of companies having significant operations in the U.K. and disrupting their operations. Financial plans are shredding and companies are facing major procurement risks and challenges. The probability of the UK and the EU arriving at a trade agreement seems difficult and the period of uncertainty is likely to be prolonged.
At SpendEdge, we understand that this period of uncertainty can pose major financial and procurement risks for companies. Therefore, we have listed out the major procurement risks faced by companies and shown how procurement leaders can prepare for Brexit in our new free resource, which is now available for free download.
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Procurement Risks that Companies Need to Address
SpendEdge has identified the key procurement risks that companies need to address in order to curb the rising uncertainty among companies and procurement leaders.
- Exchange Rates: The declining value of GBP against the USD is one of the major concerns for companies. The UK’s decision to exit the European Union is not only increasing import costs but also influencing the movement of goods across borders. Supply chains are becoming expensive and companies need an effective procurement strategy to address this situation.
- Contract negotiations: Contracts that were made earlier are now proving to be inefficient and are unable incorporate changes coming from currency fluctuations and new tariff rates. Companies require new terms and agreements that can ensure the right level of flexibility against different Brexit scenarios.
- Compliance risk: The UK government’s strategy to explore new trade deals is increasing regulatory burden for companies. Also, it is pressurizing procurement leaders to focus on network planning and identify delivery locations for commodity groups.
- To know more about the procurement risks faced by companies, request more information.
Managing procurement risks is imperative for companies looking to gain a competitive advantage. Request a free proposal to gain a comprehensive overview of our procurement risk management solutions portfolio.
SpendEdge delivers robust, real-time procurement market intelligence solutions to help sourcing and procurement professionals to manage procurement risks. Our innovative procurement solutions help enterprises to transform the structural capabilities of businesses and improve execution efficiency. Our state-of-the-art procurement risk management solutions also help enterprises to transform structural capabilities, improve execution efficiency, and achieve better cost savings. We provide businesses with actionable insights and techniques to improve their procurement system.