Brexit Brexit Brexit

SLS Group Brexit Statement

The SLS Group of Companies incorporating Analab in Ireland is committed to ensuring minimal impact to our customers as a result of Brexit.

Our business footprint in both the UK and Republic of Ireland cuts across both sides of the Brexit separation and our position as part of a wider European Group (The Dutscher Group) offers us a high degree of flexibility as the actual impact of Brexit becomes clearer. For now, key areas of contingency planning are as follows:

Sources of Supply/Supply Chain Stability

We maintain relationships with over 4000 suppliers in the UK, Europe and around the world. This delivers enormous reach and flexibility in terms of maintaining supply chain stability. It also offers us alternative product sources in the event of any supply failures.

Stock Control/Continuity of Supply

Planning and information are key, and we encourage all our customers to talk to us about higher volume/process critical products for which continuity of supply is of paramount importance. SLS can apply several inventory solutions to ensure ongoing continuity of supply. To mitigate any supply issues our customers might face we have also increased our warehouse capacity by 35% to further increase our stock levels.

Movement of Product

SLS has extensive in-house expertise for both import and export given that we currently source or supply product to and from Europe and the rest of the world. This includes expertise and relationships in areas such as freight forwarding and regulatory affairs. In addition, we utilise our own transport options as well as maintaining multiple UK/Pan-European relationships with carriers and 3PL providers which maximise our ability to maintain product movements.

Product Costs/Tariffs

We commit to our customers that we will continue to resist upwards cost movements of any kind, wherever possible as a result of Brexit. After the Government reached an agreement with the EU on tariffs prior to the 31st December deadline, we further commit to apply measures to absorb the administrative costs that come with the import of product from the EU wherever possible.  

Currency Fluctuation

In terms of minimising the effect of currency fluctuations, SLS have several existing, effective approaches. These include forward and spot buying of both product and currency. We also have a growing EURO revenue stream which helps to balance and mitigate fluctuations in the currency market. As a global laboratory supplier, we have the infrastructure to manage the impact currency fluctuations can have on our supply chain. 

Communication and Relationships

We encourage communication from our customers, suppliers, and service providers to ensure a joined-up approach as the impact of Brexit becomes clearer. Should you have any specific questions pertaining to Brexit and the ongoing continuity of supply, please contact us via brexit@scientific-labs.com. 

Supplier Risk Assessment

We have completed an extensive process of assessing risk in our supply chain through a program of formal requests to our suppliers aimed at ensuring that we understand potential pitfalls and problems of Brexit. We will continue to work in close partnership with our suppliers to ensure the best possible continuity of service and supply.

The entire SLS Group is founded upon the principle of flexibility in serving our customers. This means that any required adjustments to our systems, working practices or delivery mechanisms can be implemented quickly to ensure best possible solutions for our customers. We firmly believe that this sets us apart in the UK marketplace as our system-driven competition may not be able to react as quickly to change when the government defines what those changes will require.

We believe that SLS are currently as prepared as possible to ensure continuity of supply, ongoing value for money and excellent customer service.

We welcome further communication from our customers and suppliers alike. Please send any comments or enquiries to brexit@scientific-labs.com.

 

  • Will we see any additional price increases because of Brexit especially after Covid-19?
    We are seeing an unprecedented situation emerge as the Brexit transition period completes during a global pandemic. Consequently, there are numerous external influences that are impacting the costs of goods. Whilst product shortages on areas like PPE are impacting the fluctuating prices of certain products, we are yet to see what other impact Brexit will have on imported products from the EU. It is our intention to apply measures to absorb these increases wherever possible.
  • What is the expected tariff charge that is likely to be imposed on products sourced from the EU in the event of a no deal/hard Brexit?
    After the Government reached an agreement with the EU we do not expect any tariff driven cost increases for our customers.
  • How will the increase in tariff charges be applied to my orders with SLS?
    It is our intention to apply measures to absorb these tariffs wherever possible. However, in circumstances where this is not possible, these tariffs will be loaded into the SLS product cost and not applied through supplementary charges imposed on our customers. This will negate the application of any administrative charges in the transaction process. This applies to both direct business and any marketplace procurement platforms.
  • What action have SLS taken to ensure stock levels are sufficient after Brexit?
    We understand the importance of continuity in supply for our customers and have stock levels exceeding £6 million and operate with 95% stock availability on catalogue products. During the transition period we have increased our warehouse capacity further by 35% to improve our stock levels of key products to mitigate any supply issues our customers might face. If you feel that your account should warrant special measures to increase our stock holding, please contact your account manager or email brexit@scientific-labs.com to discuss your requirements.
  • What can I do to ensure we are not exposed to supply issues after Brexit?
    If there are concerns surrounding the continuity of supply for products which are critical to your business or research processes it is important to let us know. We encourage customers to consider forward-ordering to avoid exposure to any unforeseen disruption especially considering the impact Covid-19 has had on PPE. Please contact your account manager or get in touch via brexit@scientific-labs.com should you wish to discuss the options that are available to you.
  • Are you in a position to stockpile goods in the UK, specifically for my institution?
    Yes, we would be open to discuss options for stockpiled key lines and encourage direct dialogue on any forward ordering should you wish us to.
  • What circumstances would trigger SLS to contact me regarding risk to the supply chain?
    We are continuing to monitor the situation as closely as possible and maintain constant dialogue with our supply partners. We have released several updates to our ‘Brexit Statement’ document as and when circumstances change. We will continue to do this as the situation develops and more is understood around how the process will unfold.
  • What will happen if my products are subjected to delays or disruption because of Brexit?
    We maintain relationships with over 4000 suppliers in the UK, Europe and around the world. This delivers enormous reach and flexibility in terms of maintaining supply chain stability. It also offers us alternative product sources in the event of any supply failures, and we will always endeavour to offer alternatives wherever possible. Whilst we are anticipating some possible disruption, we are confident that the measures being employed, together with advanced planning and readiness of our customers will prevent all but the most unforeseen issues from causing disruption.
  • Will there be any short-term supply issues for certain product lines after the 31st December 2020?
    There may be logistical disruption and delays at the border that impact the whole transportation industry that move products from the EU into the UK after the 31st December 2020. The delivery of certain products that must be stored at specific temperate conditions may well be delayed until the process of transporting products can be guaranteed within a set time scale to ensure any delays do not spoil these products. Rest assured we will be in touch with our customers should this affect any of your orders.
  • How do I know if my orders are coming from within the EU or outside and subject to tariffs?
    Should you require clarity on your orders we can produce origin reports that are specific to a customer’s 12-month usage profile to identify the source of supply by country. This helps identify products that might be subject to tariffs. There may still be challenges when a product has an origin that is outside of the EU, but final supply is via the EU zone and this these orders will still be subject to the new tariffs. 70% of our active product set is sourced from outside the eurozone with most of that number coming from within the UK, meaning the majority of our product range will not be exposed to the disruption from Brexit.
  • What do you see as the potential impacts from Brexit in relation to your exposure to currency fluctuations?
    SLS have several existing, effective approaches. These include forward and spot buying of both product and currency. We also have a growing EURO revenue stream which helps to balance and mitigate fluctuations in the currency market. As a global laboratory supplier, we have the infrastructure to manage the impact currency fluctuations can have on our supply chain.
  • As an employer, what do you see as potential impacts from Brexit in relation to staff retention and recruitment?
    After Brexit we will deal with any application from a candidate from the EU in the same way we would receive an application from outside of the EU today. Provided the application has the appropriate authority to work in the UK then we will continue to consider them in a fair and consistent way based on the skills and experience to do the job as we always have committed to.
  • Will you be exposed to skill shortages within your workforce because of Brexit?
    We have not experienced any issues recruiting people from within the UK and we consider all applications based on an equal opportunities policy. More information on this can be found here www.scientificlabs.co.uk/certificates
  • How do you envisage the regulatory requirements relating to the transition from CE to UKCA marking will impact SLS?
    The UKCA (UK Conformity Assessed) marking is a new UK product marking that will be used for goods being placed on the market in Great Britain (England, Wales and Scotland). It covers most goods which previously required the CE marking. The UKCA marking can be used from 1st January 2021, however, we will still be able to use the CE marking until 1st January 2022. A full supplier audit is already under way with our Quality & Compliance team to ensure this transition is managed and applied to all applicable products before the deadline of 1st January 2022.
  • What steps have SLS taken to reduce disruption in their logistics?
    During the transition period we have increased our warehouse capacity further by 35% to improve our stock levels of key products to mitigate any supply issues our customers might face. In addition, we utilise our own transport options as well as maintaining multiple UK/Pan-European relationships with carriers and third-party logistics providers which maximise our ability to maintain product movements. SLS has registered access to the UK Government secured freight capacity which aims to make extra port capacity available outside of the normal supply ports enabling fast tracking of goods through customs that are medically and or temperature sensitive.