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Brexit Strategy at ICC

The ICC Group’s Post-Brexit Position

As we approach the end of 2020, and enter 2021 with positivity and the hope of a return to some normality, we are also acting proactively with regards to our position on Brexit, to ensure any disruption is kept to a minimum for our customers and supply chain.

At this time, it is difficult to understand the full impact of Brexit, however, we have examined all areas of The ICC Group business and supply chain to understand any potential risk areas.  We are confident that the potential impacts of Brexit are understood and suitably mitigated.

Products

ICC Supplies and supports a wide range of IT products, from global organisations and associated services, through all of our sales and service centres located in the UK and globally via our in-country partners.

UK Borders – Stock Holding

ICC’s stock holding does not rely on ‘just-in-time’.  For a significant proportion of component stock, ICC hold at least two weeks of stock in the groups warehousing infrastructure and holds 4-6 months of buffer stock in our distribution centres according to the specific contractual agreements.  At a service level ICC typically holds a minimum of 10% risk stock.

Many systems and options have a global supply footprint.  After analysis of the origin of the components used in our sales cycle, our findings conclude that 90% originate outside of the European Union (EU).

Although originating outside the EU, many of the components are consolidated in warehousing in the EU and then shipped to the UK.  Mitigation plans are in place with key suppliers to minimise any disruption that may exist in the event of a ‘no-deal’ Brexit.  This will take the form of additional stock held at one of the ICC Service centres.

Customs Tariffs

As stated above, a significant proportion of our components originate outside the EU geography and World Trade Organization (WTO) tariffs are already applicable.  For the small percentage of EU originated parts, the worst-case scenario would be that WTO tariffs would be levied.

Currency

Most of our parts that originate from outside of the UK are procured using local currency.  Our purchasing profile is typically 70% UK, 15% EUR, 15% USA/Other.

Regulations

The current directives and standards governing ICC products and services will still apply.

Suppliers

ICC will be able to supply goods in the event of a ‘no-deal’ Brexit.  Contingency planning is in place to minimise any disruption to the supply of components and product at UK ports as discussed above.

Supply and Resource

ICC operates from our UK Headquarters in Yorkshire, East Midlands and Hampshire.  Our workforce is primarily sourced from the local area for operational effect, with a network of UK-wide engineers to support our customer base, and again delivered in-country where applicable.

We consider our workforce to be at minimal risk and that our ability to maintain delivery of our entire portfolio in the post-Brexit environment will not be compromised.

If you have any queries or concerns about the potential impact of Brexit on ICC services, please call us on 0333 220 0413.

 

Leon Wheeler
CEO

 

Further Resources

For further information and resources to help you prepare your business for the UK’s post-Brexit trading relationship with the EU go to the UK transition hub – the new rules will take effect on 1st January 2021.