Businesses should take a couple of weeks before considering any company restructures following the UK's Brexit vote, according to Richard Masser, president of the Chartered Institute of Procurement and Supply (CIPS) and CEO of distribution company Crestwood Group.
Masser said compromising on quality and service now is not a solution to extraordinary conditions and executives should “hold their nerve”.
Masser echoed a wider concern in the profession that the Brexit-effect could make procurement exclusively cost-based again, having only recently been recognised as influential enough to deliver greater benefits to businesses, from improved product and services and value generation to sustainability and responsibility.
Anybody who compromises on quality or service to minimise the currency issues risks coming unstuck, he said: “There is an inevitability that it will catch up.” Instead, take this opportunity for cross-functional engagement within the company, talk to all departments in the business as a team, and take an holistic approach, he advised.
Allow the dust to settle before considering any restructures to your company, he added. “For me there is a period of reflection – a couple of weeks.” As the exchange rate tumbles and forecasts fluctuate from one hour to the next, it is the currency implications, not tariffs, that are the current focus, and the next couple of weeks will be quite informative. After that, businesses will of course have to start having conversations with suppliers, asking about strategies, he said. “As a major client or supplier, how are you viewing the whole scenario? How should we set out together to ride this storm?”
Read more on the CIPS website.