Challenges ahead: The impact of Brexit on procurement

As the leading procurement solution offering the largest tenders and awards database in Europe, at Tracker we continually strive to mitigate any potential Brexit-related issues for our customers. This is to give you the best chance of success in winning public sector and private sector tenders going forward, including government tenders, local authority contracts, healthcare tenders and other OJEU tenders.

Last month Tracker’s parent company BiP Solutions published a survey report in partnership with iGov Survey on ‘Brexit: Challenges and Opportunities for Public Sector Buyers’. The report outlines the key aspects of procurement which Brexit may have an impact on, where perhaps it already has impacted, and the preparations put in place by leaders to accommodate various Brexit scenarios. The survey was completed by 120 individuals representing 85 unique organisations across the UK public sector and offers an in-depth perception of Brexit as it is anticipated to affect the procurement marketplace.

It is important to note that at the time of writing this blog, the UK is set to depart the European Union on 31 January. However, this Brexit date is not set in stone and there are stages in the new Brexit deal which are still to be completed. Until a clear plan of action is established, it is difficult to predict the short-term and long-term impact of Brexit on procurement across the public and private sectors. We acknowledge this as a disclaimer, should any information change in the weeks and months to come.

A lack of clarity as to Brexit’s impact on procurement

55% of respondents to our survey believe that Brexit will have a high or medium impact on their procurement strategy. This also means that 45% of participants expect a low impact or even no impact on their procurement strategy going forward due to Brexit.

With such high numbers anticipating quite different outcomes, it is evident that the full future effects of Brexit on procurement are still unknown or unclear. The extent of disruption or change is indeed difficult to predict in the current climate, with many factors simultaneously at play.

There is similarly a concern for the potential disruption to supply chains. 61% of respondents cite “supply chain disruption impacting on quality and delivery of services” as a concern, yet there is no apparent clear idea of what this impact will be or how to better prepare for it.

Cost is the biggest area of concern

Survey respondents were asked about their views on the impact of Brexit on various aspects of the procurement process and how this might affect their supply chain management. 66% of participants stated that Brexit would have either a high or medium impact on their cost control measures. Others highlighted risk factors such as difficulty in obtaining the goods and services needed to meet requirements in and sourcing a skilled workforce, as shown below.

  • Control costs – 66%
  • Obtain the goods and services needed to meet requirements – 53%
  • Source a skilled workforce – 43%
  • Engage with suppliers outside the UK – 56%
  • Award contracts in a timely manner – 36%

The majority of procurement leaders have not undertaken Brexit preparations

Finally, according to the survey respondents, only 21% of the organisations have a documented strategy on Brexit which they are currently actively enacting. This means that fully 79% of respondents do not consider they have yet effectively implemented a programme of Brexit preparations. Although 17% of participants state they have a plan ready to put in place post-Brexit, 45% have no strategy one way or another.

Win government tenders and more

Tracker is here to help you successfully navigate the procurement process in the public sector and the private sector throughout the forthcoming Brexit departure and long into the future. With our support and business intelligence tools, we can assist you to grow by winning government tenders, local authority contracts and other OJEU opportunities. To find out more, book a free demo with the Tracker team today.

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