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International supply chain issues when to seek legal advice
Smooth running global supply chains are essential for all industries and sectors. There have been several issues that have affected the global supply chains; Brexit, the Covid-19 pandemic, coupled with the hostilities in Europe, have resulted in supply chains across the globe taking an enormous hit, with delays affecting necessities such as food and fuel. If your business is affected by these international supply chain issues, there may be steps you can take.
This guide will explore the biggest challenges affecting supply chains, how your business can recover and how Brexit may have affected supplies. We will also discuss the possible legal implications and when to seek professional legal advice.
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Find out more about supply chain disruptions and why they have occurred.
Find out what can be done to protect your business from the crisis and how to prepare for other issues that may arise.
Brexit has caused issues for many import/export businesses.
How the crisis can lead to legal issues for both consumers and suppliers.
Find out how our experienced team of commercial lawyers can help you.
An overview of the international supply chain crisis
International supply chains have been widely affected by the Covid-19 pandemic. The lockdown created issues has led to shortages in certain supplies and delays to deliveries. Panic buying has led to food shortages.
The fuel and energy sectors have been seriously affected by the knock-on effect of the hostilities in Europe and the resulting restrictions on energy.
Staff shortages arising out of Brexit, particularly HGV drivers, coincided with a spike in demand.
The main issues affecting businesses around the world include:
Brexit
Brexit has severely affected the availability of workers, as there are more restrictions in the ability to move freely to and from the UK and an EU country.
EU nationals now need to meet different salary thresholds and English language skills to obtain a visa.
Industries such as agriculture and haulage have found recruiting staff difficult, particularly in agriculture as the salary level is often not matched.
Covid
Arguably the biggest contributor to the global supply chain crisis is the Covid-19 pandemic.
Not only did staff have to take time away from their work, but lockdown prompted many people to leave their jobs. Many were furloughed, disrupting the supply chain worldwide.
The global supply chain crisis has many legal questions, it is possible that you could make a claim under your business insurance for business disruption. You could also benefit from contacting a qualified solicitor today.
How can a business address supply chain issues?
Protect and review your contracts
Reviewing contractual rights between you, your customers and your suppliers can help you strengthen risk management. You can also incorporate new terms into your contract that can help you prepare for future crises, so your business does not suffer financially.
Strive for better communication
Maintain clear lines of communication between your business and your suppliers, keeping an honest line of communication running with your suppliers, staff and customers can open up avenues for solutions.
Put customers and staff first
Supply chain issues are affecting thousands of businesses, so remember to be fair to your staff and generate ways to keep your customers happy. Expand your suppliers so you do not rely on a select few, and consider buying in bulk to store excess in your inventory for when it is needed.
Plan ahead
As a business, you should generate a response plan to the ongoing crisis. Evaluate the potential for new risks.
How has Brexit impacted supply chain disruption?
As previously mentioned, Brexit has hindered free movement to and from the UK. Industries that relied heavily on EU nationals are now struggling to fill the gaps, especially in the HGV sector. UK businesses that trade with EU companies will be affected most of all, with post-transition border rules and tariffs creating delays in shipments. This can lead to an increase in costs for small businesses on top of damaged sales.
You can find out more about the impact of Brexit here.
What are the legal implications of the supply chain crisis?
Ineffective supply chains have various legal implications that can negatively affect you, your revenue and your reputation. If, as a business, you do not have a good grasp on demand, you could find yourself short of supplies. You should be able to assess risks and predict the climate. If not, it could result in serious legal implications.
One of the most common legal obstacles businesses run into when supply chains encounter problems is contractual disputes. Suppliers and businesses both have demands they need to meet in order to fulfil their contractual obligations, but the supply chain crisis could hinder this. Although matters may be out of your control, you may still be susceptible to legal issues. Failing to meet your obligations or failing to inform the other party of potential issues could result in legal action.
The Supply of Goods and Services Act 1982 protects consumers when entering a contract with suppliers, but terms of business can easily be broken, such as a lack of goods or a delayed delivery time. If you believe that a supplier has breached the contract, or there are extenuating circumstances that prevented you from supplying goods, you should seek legal advice as soon as possible.
Get in touch with our international lawyers today if your dispute crosses EU borders.
How Giambrone & Partners can help
Although there is an ongoing international supply chain crisis, this does not excuse any breach of contract between consumers and suppliers. If you believe that a breach has occurred, you should aim to seek legal advice as soon as possible. This can prevent your business from losing significant revenue and may even result in compensations for finances or supplies lost.
To discuss your case further, please get in touch with our expert team today.
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