The £850,000 seventeen minute delay

Earlier in the week, the House of Commons Business Select Committee invited representatives from the UK’s automotive manufacturers to explain to them the impact of Brexit on this sector.  Honda UK’s representative gave a fascinating insight into his operation’s just-in-time supply chain.   In 2016, this company assembled 134,000 vehicles.  To do this they import 2m components a day on 350 trucks. As result they hold only one hour’s supply of components from the EU on their production lines.

This means that if as a result of Brexit shipments are held up at ports assembly would grind to a halt.  They estimated that if clearing customs increased to 17 minutes instead of the current 2 minutes it would cost them £850,000 a year.

Further information about their supply chain can be found on their website, where Honda UK give some guidance as to what they expect from their suppliers.  They list five things (OWs):

  1. Quality
  2. Cost
  3. Delivery
  4. Development ie innovative suppliers
  5. Management leadership

Source: http://www.telegraph.co.uk/business/2017/11/14/catastrophic-danger-britains-car-industry-no-deal-brexit-mps/

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This entry was posted in Chap 05 Supply chain, Sector: Manufacturing and tagged , , . Bookmark the permalink.

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