U.K. Tells Drug Makers to Stockpile 6-Week Supply for Brexit
Recovering from the pandemic has been at the forefront of things for supply chain professionals recently and for that reason, in some cases Brexit preparations have been put on the backburner. However, with the 31st December deadline drawing nearer, the U.K. government urged pharmaceutical companies to stockpile a six-week supply of medicines to avoid a shortage of drugs when the country eventually leaves the European Union (EU).
“Holding additional stock in the U.K. provides a further buffer against some disruption,” according to Steve Oldfield, chief commercial officer at the health department. “We encourage companies to make stockpiling a key part of contingency plans.”
Britain is preparing for potential disruption after the Brexit transition period ends and goods traded with the EU will be subject to new regulations even if a new free-trade agreement is agreed. If firms are not prepared for the extra burden, cross-channel trade risks being delayed and could threaten vital supply lines.
To read more about how the UK is preparing for Brexit click here.
U.K. Sanctions Guidance Adds to Warnings for Maritime Sector
The U.K.’s Office of Financial Sanctions Implementation, which is part of the country’s Treasury Department, is urging the maritime industry to be on the lookout for illicit practices that could be used to evade sanctions. Guidance from the Government Department indicates that companies are susceptible to suspicious shipping practices for example, the intentional disabling of vessel-tracking systems to conduct illegal trade and the falsifying of documentation for maritime transactions.
The guidance adds to an increasing list of guidelines aimed at the maritime industry and put emphasis on compliance complexities facing those operating in the U.S., the U.K., and the European Union, according to sanctions experts. The new guidance from the UK comes after tree U.S. agencies issued guidance for the maritime sector in May.
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Fashion Industry Says Purchase Order Cancellations Will Endure in Q3 and Beyond
The coronavirus pandemic has caused concerns for the fashion industry to add to the list of challenges that existed pre-pandemic. According to a new survey conducted by the United States Fashion Industry Association, 100% of fashion industry executives surveyed reported having to postpone or cancel apparel sourcing orders this year as a direct result of the pandemic. This is going to cause long term effects for the industry with nearly 50% of those asked saying that the order cancellations and postponements go beyond the second quarter of 2020 and another 40% believe they could remain in effect longer term.
Beyond the impact of the Covid-19 pandemic, increased sourcing costs, supply chain risks and compliance, and diversification still remain key challenges for the fashion industry. For the third year in a row, fashion leaders have listed U.S. “protectionist trade policies” as a top business concern. This has led to sourcing diversification being a key strategy for resilience with 29% of leaders, who took part in the survey, saying that they now source more from Vietnam than they do from China, up from 25% in 2019.
However, despite reduced optimism about the industry’s future due to the pandemic, 90% of respondents plan to increase hiring over the next five years, particularly in production and supply chain roles, the report found.
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Have a nice and safe weekend!