FEATURE u Manufacturing


Why manufacturers need to ensure frictionless trade despite Brexit paperwork boom


By Scott Wilson, director of customer experience, eFax T


he UK’s transition out of the European Union has not been as smooth as hoped, or at least not from a trade


perspective. Whatever the politics, I doubt anyone wanted it to have the impact on cargo flows that we’re now seeing. According to the Office of National Statistics, exports of goods to the EU fell by 40% in January 2021, while imports dropped 29%. Whether retailers trying to get products into the UK or manufacturers trying to reach markets across the Channel, many sectors are struggling to get their goods into and out of the EU and the UK. But, why? An increase in paperwork certainly


hasn’t helped. As the foreword to the MAKE UK Q1 2021 Manufacturing Outlook points out, “businesses are faced with a plethora of red tape and bureaucracy which will disproportionately impact the smaller companies that lack expertise than the larger firms that are more able to absorb these costs.” And it’s not just the amount of bureaucracy


involved, but the cost of it, too: from customs fees to expensive health certificates. British manufacturers that once sold as easily to Spain as they did to parts of the UK are facing significant obstacles not there before. The increase in administration is such that a majority of UK IT decision-makers (68%) (eFax survey) believed extra levels of paperwork required to do business across EU borders creates an additional security risk. Unsurprisingly, the same study found that 57% are accelerating the speed of digital transformation of paper- based processes as a direct result of the disruption caused by Brexit. What’s more, 77% of respondents would have accelerated digital transformation sooner if they had been aware of how much the extra paperwork would slow down cross border trade and transport.


OPPORTUNITIES While some may argue that manufacturers can only react to the regulatory environment they operate in, there are still opportunities to improve their own operations. In doing so, they can increase their chances of enjoying frictionless cross-border travel and trade. One area to look at would be how to store and share documentation with employees and suppliers, irrespective of location. Even though everything’s going digital, there are


10 June 2021 Irish Manufacturing


many instances where physical documentation remains the norm. To get a product from factory to customer requires a significant number of third parties, all of which with their own processes and preferred ways of working. For instance, bills of lading, the piece of paper that proves cargo ownership, are often couriered from one party to another. However, there is appetite for change. The eFax study found that 86% of respondents believe workers travelling across borders would benefit from the ability to send, receive and securely sign extra layers of paperwork on the move. A few years ago, this wouldn’t have been possible – neither the IT infrastructure nor the devices were available at scale for entire workforces to be equipped with the right tools to digitally share documentation. Now, however, high-quality coverage, cloud computing, smartphones and tablets are


changing that. The desire and the means are there – what manufacturers need to do now is ensure that their digital transformation covers all aspects of their operation. In doing so, they can ensure that they are well placed to optimise the transit of their cargo across borders and get their products into the hands of customers.


EXTERNAL FACTORS There are always going to be disruptive external factors. Last year it was the pandemic, this year it has been the UK’s exit from the EU. No one wants to see backlogs of trucks snaking out of ports, or customers left disappointed by deliveries unable to get over the border. For manufacturers, that means ensuring that everything they control is as smooth as possible. With more paperwork than ever, making sure it is in the right hands at the right time is critical to this process.


www.irish-manufacturing.com


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