Global Supply Chains and Operations in Post-Brexit UK

Introduction 

The implementation of trade policies within the UK continues to affect a majority of the car manufactures, leading to development associated with the global business environment. The trade policies have a significant impact on the supply chain management and logistics of a company as they focus on establishing regulations that control keys aspects such as the import as export of goods and services. In the UK, the trade policies have impacted the operations undertaken by the car manufactures, thus the need to focus on an evaluation of the business environment to identify critical factors that would be necessary for enhancing effective supply chain and logistics management. Effective supply chain and logistics management have a significant impact on improving business operations within a company, which is a vital aspect of achieving the set goals and objectives.

The ability to enhance supply chain and logistics management helps a company to be in a better position to overcome risks and challenges associated with the implementation of trade policies. The following report will focus on evaluating Bentley Motors Limited, which is a car manufacturing company in the UK. Owing to the trade policies implemented, the company faces a wide range of challenges associated with the business environment, thus the need to capitalize on measures to enhance logistics and supply chain management. The report will focus on the provision of crucial information to the board of directors of the company addressing factors such as the nature of the global business environment focusing on the impact of the polices on the company's ability to achieve its goals and objective. The report will provide critical approaches and recommendations that would be adapted to enhance business operations within the company.

Role of Logistics 

In Bentley Motors Limited, logistics is an important aspect that helps in enhancing the overall operations undertaken within the company. Bentley Motors Limited, which is a company that engages in the manufacturing and marketing of cars, requires the proper implementation of logistic measures to ensure effectiveness in all major processes that involve transportation, distribution, warehousing, among other operations. According to Ayers & Odegaard (2017), the primary role of logistics in entails the alignment of all processes that enables a company to operate effectively in any given business environment. The logistics operations defined within Bentley Motors helps in promoting efficiency in the movement of goods within a given supply chain. Although the company has an established supply chain and logistics management team, the development of different trade policies have affected the nature of operations considering the quality of regulations put in place.

Fast Order Processing 

One of the most significant roles of logistics for Bentley Motors involves order processing, which is an important aspect that enhances effective operations within the company. Considering that the company focuses on the manufacturing of cars, the issue of order processing is a crucial element that concerns detailing different transactions that are undertaken within a supply chain. Logistics, in this case, helps in ensuring that an order document incorporates all the relevant details such as the particulars of the product, cost, payment terms delivery period, among other essential factors that are relevant during order processing. The company requires proper logistics in meeting all the orders placed by the customers.

The ability to process orders effectively helps towards the achievement of goals and objectives of a company, considering that customers enjoy effectiveness in the process. The ability to engage in fast order processing may help in ensuring that the company is in a position to remain competitive even after the introduction of new trade policies in the UK. Considering the move to withdraw from the EU, companies should focus on the establishment of effective logistics operations that can ensure that a company overcomes supply chain challenges associated with the development of new trade policies. Successful logistics operations provide a platform for enhancing performance, which plays a significant role in promoting development goals.

Inventory Control 

The second role of logistics in the company involves inventory control, which is a significant aspect of promoting business operations. Logistic operations enhance inventory management by keeping enough inventories that meet the requirements of the customer and maintain the lowest costs within the processes. According to Fernie & Sparks (2018), logistic processes enhance inventory control by creating a balance between the satisfaction of the customers and support a market opportunity for the company. The car manufacturing company capitalizes on the implementation of measures that result in effectiveness during inventory control. The logistics operations within the company have had a significant role in promoting efficiency despite challenges associated with tough regulations and measures that are implemented within the United Kingdom.

Logistics has helped the company to remain competitive within the market by capitalizing on the satisfaction of the customers through the approaches implemented within the supply chains. With the establishment of the new trade policies in the UK, the company will require that the logistics operations can ensure that the company maintains its competitive advantage. Considering that the supply chain policies with the non-EU countries may vary, it is vital to ensure that logistics can capitalize on the opportunities presented by the policies and overcome the risks. Effective inventory control measures through the logistics operations allow a company to benefit customer service, which is a significant aspect that promotes growth in a business environment.

Warehousing 

Another vital role of logistics in the given company entails the aspect of warehousing, which is critical considering that the company capitalizes on the manufacture of cars. Warehousing is an essential aspect of the company as it helps in enhancing the storage of the vehicles, which in this case, are the finished products of the company. The company operates one of the largest warehouses that helps in storing cars before being distributed to consumers in different parts of the world. The operations within the warehouses are enhanced through logistics, which assist in maintaining all the necessary considerations that concern the storing of final products. According to Safonovs & Upadhyay (2017), logistics helps in strengthening the process of decision making regarding various aspects such as location, size, design, layout, among other vital elements. Through proper logistics, the company engages inappropriate measures that concerned warehousing to help in enhancing the storage of products.

Logistical Packaging 

Logistical packaging plays a significant role in logistics operations in a company, which focuses on the preparation of a product ready for distribution to the customers. Logistical packaging helps to ensure that products get to the customers effectively without experiencing any form of distortion. Logistics operations in a company capitalize on the implementation of different packaging approaches as part of promoting the image and brand name of a product. In Bentley Motors, the packaging is a vital aspect that assists in easing the process of transportation and distribution of the products to the customers. Although the company experienced challenges associated with the packaging of the products, which is attributed to the nature of products, the company experience adequate success regarding the transportation and distribution of the products. The changes in trade policies associated with Brexit may have a significant impact on the company, considering that the issue of packaging may be impacted by the polices.

Impact of Logistics on Marketing and Business Development Goals 

Customization Capabilities 

Considering the mentioned roles of logistics in the company, it is essential to note that logistics have a significant impact on the overall wellbeing and development of a company. Logistics provides a company with the ability to achieve marketing and business goals through operations that are associated with effectiveness in logistics operations. It is important to note that logistics have a significant contribution in adding value to the supply chain and ultimately enabling a company to extend its services to other potential markets. The first indication that logistic contribute to the achievement of business goals in a company entails the customization capabilities. Through practical and efficient logistics, a company can meet the set business goals considering that a company gets into a better position to earn a more significant market share through increased sales. The customization of products acts as a marketing strategy that attracts customers towards purchasing products that are uniquely designed to ensure that they meet their individual needs.

Ability to React to the Changing Business Needs 

Another indicator of the contribution of logistics in enhancing international marketing entails the ability to react to the changing business needs. Logistics can identify the changing trends and needs in the market, which is an aspect that helps in the development of products that are viable to the customers. Upon the identification of the changes in the business needs, the logistics of a company ensures that a company works towards incorporating the changes in the products offered. In Bentley Motors, the logistics operations help in the achievement of marketing objectives through the provision of proper information concerning the market needs. Lastly, logistics have enhanced the ability of Bentley Motors to achieve development and marketing goals through the management of labour and transportation costs. According to Pettit, Fiksel, & Croxton (2010), control of different costs associated with the running of a company is a crucial aspect that helps towards development.

Continuous Improvement 

Effective supply chain and logistics management contribute to added value in an organization through constant improvement regarding different aspects of a company. Through constant improvement, a company experiences growth and development, which is an indicator of the achievement of the overall goals and objectives. In Bentley Motors, the continuous improvement of the logistic operations helped in enhancing the global marketing goals of the company, considering that it was able to venture into the international markets. The effort of the logistics to capitalize on continuous improvement is regarded as a significant aspect that may help in promoting competitive advantage even after the development of trade policies that may not be favourable within a business environment. The risk associated with Brexit may have a significant impact on the achievement of the strategic goals and objectives of the company; thus, the need to capitalize on continuous improvement.

Opportunities and Risks Associated with Global and Pan-European Logistics Systems 

The development of Global and Pan-European Logistics Systems is attributed to Brexit, which is a move of the UK to withdraw from the European Union. The withdraw move, in this case, was attributed to the 51% vote that voted UK out of the EU. Considering that EU and the UK engaged in effective trade that was based on trade agreements, the move to withdraw from EU may a wide range of implications considering there may difference in trade differences, which may influence businesses. Prior to Brexit, the management of supply chains between UK and EU was effective and straightforward owing to trade agreements and policies that allowed free movement of labour and goods. However, companies may experience challenges attributed to the withdrawal move considering that trade policies may affect international trade for companies in the UK.

The development of global and pan-European logistics systems may face tough trade policies that affect the ability of a company to engage in effective business operations. Following the Brexit negotiations, it is necessary for companies in the UK to focus on the implementation of supply strategies to help in remaining competitive in the market even after the establishment of the trade policies. For Bentley Motors, move the decision to by the UK to exit the EU may being about a vast range of opportunities and risks that the company management ought to consider in its structured approach through which to select prospective strategies. Additionally, the consideration of these opportunities and risks would be of great value in ensuring that the company is able to capitalize on supply chain robustness as a way of ensuring that the company is able to capitalize on the vast European market.

Opportunities 

The following is an analysis of some of the opportunities that will arise as a direct impact of the adoption of Global and Pan-European Logistics Systems:

Trade deals with non-EU countries to create links with new suppliers 

Bentley Motors finds itself at an advantage considering that Brexit would mean that the UK would be free to engage in trade deals with non-EU countries without any major restrictions that may bar the trade engagements. Through these trade deals, Bentley Motors is likely to benefit from the fact that it will have access to new suppliers that expand the company's ability to maximize its profitability. Brexit would mean that the UK would seek to ensure that it seeks to new trade partners in different parts of the world, which would be seen as an advantage for companies within the UK (Pettit, Croxton, & Fiksel, 2013).

When selecting strategies to aid in the development of suppliers, the board of directors will need to consider the fact that Brexit is likely to expand the company’s supplier base significantly. That means that the board will need to adopt a strategy that accounts for the expanded market structure to determine the viability of the opportunity created through Brexit. Bentley Motors may need to reconfigure itself to ensure that its approach to the supplier market is well focused as a way of improving its possibilities of success. The strategies selected must rely on the need for having to create partnerships with new suppliers, especially from countries where tariffs are much lower. The impact that this is expected to have is that the company will experience a significant reduction in its cost of production attributed to its access to new suppliers that would be far much cheaper compared to those from the EU.

Trade deals to open non-EU consumer markets 

One of the key growth visions for Bentley Motors is to expand its market reach into different markets around the world, which would aid to improve on its worldwide market share. Brexit is offering an opportunity for Bentley Motors to expand into non-EU consumer markets depending on the trade deals that the government would seek to make with other countries around the world. An analysis of the planned approach to Brexit indicates that the UK is focusing on access to new markets to enhance its ability to meet its economic projections (Manners-Bell, 2017). Access to new suppliers would mean that the company would be in a better position to achieve its goals in the different consumer markets around the world, which may include Africa, Asia, and Australia, each of which has its own set of demands.

The robustness of Bentley Motors’s supply chain model would depend wholly on its approach to the new and open markets that would define its competitive advantage. From the supply chain point of view, it is evident that the company has made notable investments towards ensuring that it creates a supply chain network that not only strategic but effective. The trade deals that the UK is likely to achieve with countries around the world would define these countries as prospective for investment. The board may need to develop valid strategies that will aid in highlighting Bentley Motors as a leading brand; thus, allowing for its acceptance in the new markets.

Risks 

The following is an analysis of some of the risks that Brexit is likely to portend for Bentley Motors as a company operating within the UK:

Higher costs of raw material importation from the EU 

Over the years, Bentley Motors has been able to build a reliable supplier base across Europe in seeking to ensure that it capitalizes on the EU, which helps in minimizing the costs of importation of raw materials. However, the company finds itself facing a significant risk associated with an increase in the cost of raw materials importation into the UK from EU countries. When importing raw materials from EU countries, Bentley Motors may experience taxes, duties, tariffs and import VAT, which would mean that the cost of importation would increase. The deal reached by the UK and EU countries does not factor trade as a key activity between the EU-member countries and the UK and their implications from a business perspective (Calle, DiCaprio, Stassen, & Manzer, 2019).

The change in tariffs for products being imported from the EU would mean that the cost of production for its vehicles would increase at an equal rate; impacting the consumers of its vehicles in the UK. Although Brexit introduces prospects of new suppliers from other countries, the direct implication that this would have on its operations is significant. Bentley Motors may find itself cutting down on its production as a way of ensuring that it cushions itself from the high importation costs. The company may need to restructure its approach towards finding raw materials that would help it meet some of its set goals. Generally, this risk far outweighs any opportunities that Brexit may bring about for Bentley Motors in its bid towards maintaining its operations in the UK.

Complexity in Supply Chains 

Brexit creates a high risk for UK-based companies, as it impacts their supply chain strategies in a significant way, which is likely to create possible complexities in the supply chains approached adopted. For Bentley Motors, one of the key supply chains challenges that are likely to result from Brexit is the need for the company to adopt a supply chain that would handle higher volumes and changes in requirements. An analysis of the company’s operations before the Brexit indicates that the supply chain strategy adopted did not consider the need to move high volumes, as it was cheap to import. However, Brexit results in significant changes in requirements for important; thus, creating the need for the company to reevaluate its supply chain to meet this expectation.

Bentley Motors may need to engage in supply chain audits that are specifically targeted at conducting a full review of enterprise systems adopted by the company in its approach towards eliminating possible challenges from the new requirements. Another key complexity that is likely to arise in the company's supply chain is on warehouse labour, as the company may find it much more challenging to find qualified personnel to manage its warehouses. While the UK, as part of the EU, large numbers of EU migrants would come into the UK where they would find relevant employment opportunities across the different warehouses (Zinn & Goldsby, 2019). For Bentley Motors, this was a major advantage, as the company was able to ensure that it had access to an adequate number of personnel to aid its production. However, Brexit has resulted in a significant change, as the number of migrants coming into the UK has reduced significantly due to the change in entry requirements.

Cost of Market Access: Currency/FX Exposure 

Since June 2016, which was the time when the Brexit side won in the referendum, the strength of the Sterling Pound has reduced steadily, which serves as a clear indication that UK-based companies are likely to face a major challenge due to foreign exchange exposure (Li, Shishank, de Ruyter, Ali, S., Bailey, Hearne, & Salh, 2019). Bentley Motors finds itself operating in different countries within the EU, which becomes an issue of concern, as the value of its products in the EU markets is likely to reduce due to the depreciating Sterling. The depreciation of the Sterling can be attributed to the fact that many of the local investors are moving into the EU with the view that the domestic demand will weaken after Brexit has been enacted.

For companies such as Bentley Motors, the depreciation of the Sterling creates a situation where the cost of EU market access will increase significantly considering that they will be expected to conform to the new tariffs. The EU is one of the largest markets for UK-based companies attributed to the high number of people in the EU-member countries. Brexit has created a situation where companies, operating in the UK, do not have access to the EU market, which becomes a key issue of concern for companies that intend to maximize on their profitability (Bailey & De Propris, 2017). From a business point of view, it is important to take into account that this is likely to affect the profit margins that Bentley Motors is likely to get as part of its operations outside the UK. Although the company may transfer the costs to the consumers, the impacts associated with Brexit far outweigh the benefits.

Recommendations 

Considering the risks and opportunities associated with Brexit, the first recommendation for Bentley company would be to engage in the mapping and auditing of the supply chains. A company requires to be ready for Brexit by ensuring that all the necessary measures are put in to capitalize on the opportunities presented. However, it is crucial for a company to ensure that all its suppliers have the required information regarding the Brexit and the regulations associated with the new trade policies implemented. The entire supply chain should be focused on overcoming the risks associated with Brexit.

The second recommendation that would involve the implementation of different strategies to minimize costs and ensure that the company remains profitable. Considering that Brexit poses a risk of increased expenses associated with taxes and costs of imports, companies should focus on limiting costs as much as possible to ensure that a company can meet development goals. In this case, Bentley should capitalize on the implementation of strategies such as automated manufacturing, which may help hep in reducing labour costs. The company should ensure that the logistics operations focus on minimizing all costs associated with different processes.

Lastly, it is essential to capitalize on the analysis of the market environment to identify the markets that are more viable. In this case, the company should analyze the viability of the EU markets to determine whether it is necessary for them to venture into the given markets or to continue the manufacturing operations in the UK. In that case, it is important to analyses opportunities and threats associated with Brexit and identify the aspects that outweigh the other with the aim of enhancing proper decision making.

Conclusion 

The implementation of trade policies within the UK continues to affect a majority of the car manufactures, leading to development associated with the global business environment. The ability to enhance supply chain and logistics management helps a company to be in a better position to overcome risks and challenges associated with the implementation of trade policies. The logistics operations defined within Bentley Motors helps in promoting efficiency in the movement of goods within a given supply chain. The company requires proper logistics in meeting all the orders placed by the customers. The car manufacturing company capitalizes on the implementation of measures that result in effectiveness during inventory control. The company operates one of the largest warehouses that helps in storing cars before being distributed to consumers in different parts of the world. The changes in trade policies associated with Brexit may have a significant impact on the company, considering that the issue of packaging may be impacted by the polices. Bentley Motors finds itself at an advantage considering that Brexit would mean that the UK would be free to engage in trade deals with non-EU countries without any major restrictions that may bar the trade engagements. The robustness of Bentley Motors’s supply chain model would depend wholly on its approach to the new and open markets that would define its competitive advantage. Bentley Motors may also experience taxes, duties, tariffs and import VAT, which would mean that the cost of importation would increase.

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