Lack of pace in Brexit preparations threatens supply chain, warns Logistics UK

The UK’s interconnected supply chain could be put at risk due to a lack of pace in some government Brexit preparations, warns Logistics UK.

The organisation, which represents the logistics sector, says while some of the systems being developed to manage the flow of goods and border processes are making good progress, the new Smart Freight system will not be ready in time for adequate testing and staff training.

The Smart Freight software will be needed to be used by every company involved in exporting goods to the EU.

Sarah Laouadi, European policy manager at Logistics UK, said: “Despite the government’s assertion that the Smart Freight software will be ready before January 1, 2021, this timeline fails to take into account the time it will take for transport companies, their customers, subcontractors and customs intermediaries to agree and co-ordinate the necessary business processes at the right time to gain access to the border.

“We are concerned that mass user testing of the software will not be possible until October – or maybe even November: this is far too late for the thousands of companies and tens of thousands of people who build our complex supply chains to redesign their own processes and contractual relations  before the Transition Period ends. 

“This timeline brings Smart Freight onstream at the height of the Christmas peak – traditionally the busiest time of year for the logistics industry – the worst possible time for our members to test and train staff in new working practices.

“Even if the software is ready by the end of the year, the government’s plans ignore the users’ perspective – our members will need time to learn the new system, adopt it and help to iron out any potential issues in the system. 

“This will leave logistics businesses carrying the can for the government’s failure to plan in a timely fashion – something we have been warning about for some time now.”

Smart Freight is one of eight IT systems which hauliers will need to use to move goods to and from Europe after December 31, 2020:  these include four UK systems, and up to four other EU country IT systems, depending on their route and goods to be transported. 

Logistics UK has signed a joint letter to Michael Gove MP alongside other logistics industry bodies, requesting that the Smart Freight development be speeded up.