Supply chain specialists have warned that rapid implementation of technology is one answer to avoid customs clearance bottlenecks in the UK caused by Brexit Customs clearance issues.
Their comments came after DB Schenker yesterday confirmed that it has temporarily suspended deliveries to the UK as a consequence of Brexit issues from January 1.
Sam Tyagi, CEO of KlearNow and an American Red Cross advisory board member, said: “DB Schenker is one of the largest logistics firms in the world. It’s hugely concerning that they are having paperwork problems. If they’re struggling, what hope do smaller businesses have?
“This was always going to happen. Without the rapid implementation of technology to make customs clearance easier, faster and cheaper, this trend will continue and UK consumers will suffer as a result.”
“Customs clearance is so often the bottleneck in international supply chains. It’s a critical function but it has failed to keep apace with technological innovation.
“An alarming percentage of customs entries are still processed with manual data entry staff. As a result, customs clearance is already slow, opaque and prone to error. It’s only going to get worse.”
Richard Bartlett, Brexit and trade advisor at Export Unlocked, said: “DB Schenker may be ‘the canary in the coal mine’ for the logistics sector.
“They’re a global firm, part of Deutsche Bahn, the second largest transport company in the world. It has revenues of 16 billion Euros. If DB Schenker is struggling with incorrect or incomplete paperwork, what hope is there for small and medium sized logistics firms?
“Our sector has been warning for months that customs processes at the border are out of date and too opaque. The fact that the entire system still relies heavily on manual data entry is worrying. This was always going to happen.”
“No matter the size and experience in the logistics business, unless you are prepared to use technology to your advantage and are not heavily reliant on manual process what else did you expect? It’s just DB Schenker facing this problem, all sized companies are facing this problem. Technology is the answer.”
