Brexit consequences on supply chains: towards a risk management framework

Abstract

ABSTRACT This article investigates Brexit-induced consequences on supply chains and logistics – as well as potential solutions and strategies by carrying out a content analysis through a literature review, the first to our knowledge. Our findings reveal that Brexit-induced consequences for supply chains include increased customs duty rate, labour supply issues, increased costs related to expected delays, tariff and nontariff barriers, added complexity to guarantee food safety, authenticity or security, increased food prices, as well as low-skilled households carrying the major load. Our findings regarding typical supply chain strategies or solutions for abovementioned Brexit-induced consequences include supply chain redesign, relocation of operations and markets, changing sourcing countries or regions, new information and communication technologies solutions such as traceability and blockchains, vertical and horizontal collaboration, resilience, better risk-recovery strategies, as well as the switch to ‘other’ metrics. Another result refers to the fact that we observe only a low level of theoretical grounding in (supply chain) risk management literature among the considered articles.