Brexit didn’t Break UK-EU Supply Chains, it Rewired Them

Brexit’s second chapter shows that UK-EU Supply Chains have survived, but adapted. Logistics must evolve, not just recover, writes Stephen Williams, director and co-founder, Fidelity Fulfilment  (pictured with co-founder Simon Vincent).

As the UK and EU enter a new phase of Brexit, we’re seeing that it demands a deeper reassessment of how logistics and fulfilment truly work across borders.

For the past few years, businesses on both sides of the Channel have been in reactive mode, patching up supply chains, firefighting disruptions, and doing whatever it took to keep goods moving. But we’re now beyond short-term fixes. In many ways, Brexit didn’t just disrupt logistics, it fundamentally reshaped it. The challenge now is not just to restore the old ways of working, but to embrace new models that reflect the reality of a structurally changed trade environment.

Drawing on my experience working across both the UK and EU fulfilment landscapes, it’s clear that this phase isn’t just about recovery, it’s about fundamental evolution.

Dual-entity warehousing as the new normal

One of the most significant shifts we’ve seen is the widespread adoption of dual-entity warehousing. For brands serious about serving both UK and EU markets, operating separate fulfilment entities is now standard practice. It might not be as lean or simple as pre-Brexit operations, but it’s faster, more compliant, and dramatically reduces the friction associated with customs delays, VAT complexity, and regulatory bottlenecks.

At Fidelity Fulfilment, we’ve helped brands set up mirrored infrastructure across borders. The result? Predictable delivery times, better customer satisfaction, and greater operational control. This isn’t just a workaround, it’s the future of cross-border commerce.

The SPS agreement as a B2B turning point

The new SPS agreement could be the most meaningful development for cross-border logistics since Brexit itself, particularly in regulated sectors like food, agriculture, and pharmaceuticals. While it’s still early days, this agreement offers the potential for reduced inspections, faster clearance, and more streamlined compliance processes.

For B2B operators – especially those dealing with high-sensitivity goods – this could unlock real efficiency. But it also raises the bar: only those with robust traceability systems, digital documentation, and tight supply chain control will be able to fully leverage these improvements.

Automation is no longer optional

Another major transformation is how technology has become central to fulfilment. Customs automation, smart inventory management, and real-time compliance tracking used to be nice-to-haves. Now, they’re mission-critical.

Providers that manage high-volume or complex shipments can’t compete without deeply integrated systems that can keep pace with constantly changing rules and consumer expectations. We’ve invested heavily in these areas, not just to meet compliance requirements, but to enable scale. Technology isn’t just making fulfilment more efficient, it’s turning it into a growth engine.

EU brands are returning, but with caveats

Interestingly, we’re seeing more EU-based brands re-entering the UK market. After the initial Brexit shock, many paused or pulled back entirely. Now, with systems stabilised and clearer pathways to market, they’re returning, but with a new level of scrutiny.

These brands are laser-focused on cost-benefit analysis, especially in low-margin categories. That puts pressure on fulfilment providers to be more than just logistics partners. We’re expected to deliver flexibility, speed, and transparency, while also helping clients manage risk and protect margins. It’s raised the bar, and in the long run, that’s a good thing.

Fulfilment as a strategic partner

With the UK fulfilment market expected to more than double by 2030, it’s clear that fulfilment can’t be treated as a backend function anymore. It determines how fast you can enter new markets, how well you serve your customers, and how resilient you are to future shocks.

But unlocking that potential requires the right kind of relationship. A fulfilment partner shouldn’t just be a service provider, they need to be a true collaborator, culturally aligned with your brand, and invested in solving problems together. While technology remains important (though it is less of a differentiator as most providers will catch up), it’s the businesses that embrace this more strategic, relationship-driven model that will be better positioned to lead.

Brexit may have drawn new lines on the map, but it’s also redrawn the rules of engagement. The next chapter won’t be about getting back to normal – it’ll be about building something better, with the right partner by your side.

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EU Road Transport Toll Exemption Extended

The European Commission’s proposal to extend toll exemptions for zero-emission heavy-duty vehicles is a welcome step but broader Eurovignette reforms are still urgently needed.

IRU welcomes the European Commission’s proposal to extend toll exemptions for zero-emission heavy-duty vehicles, including trucks, to help encourage their market uptake. The Commission’s proposal extends the current exemption from road tolls and user charges for zero-emission heavy-duty vehicles from 31 December 2025 to 30 June 2031. Announced in the Industrial Action Plan for the European automotive sector, the measure aims to support the competitiveness of sustainable road transport to help boost the market uptake of zero-emission vehicles and align with the EU’s CO₂ emission performance standards, which target a 43% reduction in emissions from new heavy-duty vehicles by 2030.

IRU EU Advocacy Director Raluca Marian said, “Extending toll exemptions is a much-needed signal of support for early movers investing in zero-emission vehicles. It acknowledges the reality that incentives, not penalties, are what truly accelerate decarbonisation in commercial road transport. However, IRU urges EU policymakers to address key gaps in the broader Eurovignette framework to ensure a fair and effective transition to low- and zero-emission road transport.”

IRU stresses the need for urgent action in the following key areas:

1. Including other low-carbon fuels: Vehicles powered by alternative liquid and gaseous fuels, such as e-fuels, carbon-neutral fuels, biofuels, and biofuel blends, should also benefit from substantial toll reductions to support immediate lowering of CO₂ emissions in transport through the uptake of clean fuels.

2. Earmarking of CO₂-related revenues: A temporary, mandatory allocation of all CO₂-related toll revenues to support the commercial road transport sector’s decarbonisation efforts is essential.

3. Avoiding double taxation: The current framework allows Member States to impose multiple CO₂-related charges (e.g. rate variation and external cost charges), which risks overburdening operators and undermining investment in clean technologies.

“At this critical stage, when the sector must scale up its investment in zero-emission vehicles, which remain significantly more expensive, a temporary earmarking of CO₂-related toll revenues to support this transition is essential,” concluded  Marian. “Without this, many operators will struggle. Moreover, the Eurovignette framework must go further by recognising the contribution of low-carbon fuels already reducing CO₂ emissions. An inclusive and balanced approach is the only way to ensure a fair and effective green transition.”

The proposal will now be reviewed by the European Parliament and the Council under the ordinary legislative procedure.

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AI-Powered Robotics Boost Warehouse Efficiency

One of the UK’s largest and longest-standing redistributor and retailer of surplus products, Company Shop Group (CSG), has announced a strategic partnership with Dexory, a leading provider of real-time warehouse visibility and automation solutions, to transform inventory accuracy, reduce waste, and improve product flow within its ambient warehouse operations.

The partnership, which uses Dexory’s autonomous robot and AI-driven platform, is delivering transformational results across CSG’s Barnsley, South Yorkshire warehouse, which holds a wide range of surplus stock across food, homeware, personal, and pet categories.

Due to the fast-paced nature of surplus redistribution, accurate and timely stock processing is critical. Historically, inaccuracies in stock levels have led to some picking and dispatch delays. By deploying Dexory’s real-time data and automation solution, CSG is now able to track stock with a level of accuracy and speed not previously possible – with an increase of over 300 pallets added to the warehouse management system (WMS) during the trial period alone.

AI-Powered Robotics

“The Dexory solution stood out as the most effective and least disruptive option after reviewing several providers,” said Martin Upton, Operations Director, Company Shop Group. “It’s fast, flexible, and has integrated seamlessly with our existing warehouse management system. The system has also significantly increased visibility into our Dispatch area – something we had limited access to before. This has dramatically increased efficiency and enabled smoother product flow throughout our operation.”

Dexory’s solution is now used not only for stock integrity – ensuring stock is stored in the right location and allowing for rapid issue resolution – but also to support dispatch operations by providing by-date priority lists and real-time views of dispatch pallets. The robot’s ability to perform multiple autonomous scans per day empowers operational teams to act quickly, identify root causes of issues, and implement targeted training and continuous improvement efforts.

“We’re proud to support a mission-led business that is tackling waste reduction across the industry,” said Oana Jinga, Chief Commercial & Product Officer and Co-founder of Dexory. “By combining our AI-powered robotics and real-time data platform, we’re enabling their team to spot issues sooner, react faster, and ultimately deliver a more effective and efficient end-to-end process – turning warehouse visibility into tangible operational and environmental impact.”

Oana Jinga
Oana Jinga, Dexory

The project has already freed up valuable time for the client’s stock control team, enabling them to focus on wider efficiency initiatives across operations. With the proven benefits in inventory control and process flow, Company Shop Group sees this partnership as a key pillar in achieving its long-term goal: creating a world where no surplus product goes to waste.

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Tariffs Trigger Firms to Shift Operations Closer to Home

While headlines have focused on the economic shocks of US trade policy, research shows UK companies are taking proactive steps to localise supply chains, safeguard operations, and offset inflationary pressures.

“Tariffs and trade shocks have put UK firms under real pressure – but they’re not retreating, they’re rewiring. This is a strategic reset – not just a stopgap. The UK is leading Europe in nearshoring and local sourcing, not just to cut costs but to take control. This is a strategic reset – not just a stopgap,” says Matthew Woodcock, Regional VP, CVM/Supply Chain Strategy (EMEA & APAC), Coupa.

Businesses are responding to rising global tariffs and supply chain volatility by taking decisive action. According to new research from Coupa, a leading AI-native total spend management platform, 85% of UK companies are increasing or planning to increase nearshoring over the next 12 months to shift operations closer to home – more than any other country surveyed, including the US (74%), Germany (74%), and France (66%).

Rather than absorb cost shocks passively, UK businesses are strategically reshaping their supply chains to prioritise local suppliers, reduce dependencies on high-risk regions, and build greater resilience into business operations.

Pricing remains a primary pressure point. 61% of UK suppliers plan to raise prices by five to ten percent – the highest share across any country surveyed – with a further 22% expecting to increase prices by more than ten percent. These hikes are expected to hit consumers directly in the coming months, with rising supplier costs likely to be passed along the value chain. To manage margin erosion, businesses are turning to mitigation strategies such as stockpiling inventory (38%) and increasing local sourcing (37%), signalling an urgent shift to contain upstream costs and safeguard downstream stability.

While almost half (49%) of UK firms report that recent US trade policies have negatively impacted their bottom line, only six percent forecast revenue losses above ten percent. This suggests businesses are feeling the pressure but remain comparatively confident in their ability to adapt.

This resilience is underpinned by decisive sourcing shifts. UK companies are moving away from perceived high-risk regions, with 31 percent pulling back from the US and 27 percent from China. Instead, they are increasingly prioritising domestic and European partners, with 41 percent sourcing more from the UK itself, 41 percent from Germany, and 31 percent from France. In total, 75 percent of UK suppliers now prioritise local sourcing in their future strategies – a higher proportion than in Germany (70%) or France (67%).

At the same time, the criteria UK buyers use to select suppliers is shifting. While price remains important, businesses are placing greater emphasis on reliability and compliance. 53% of UK buyers cite proven quality and reliability as a top priority. Stable and competitive pricing (57%) and full regulatory compliance (47%) is also important. These figures point to a clear pivot from cost-efficiency to risk reduction and supply assurance.

Woodcock adds: “Periods of disruption always create space for reinvention – and the smartest companies are using this moment to sharpen their competitive edge. UK firms aren’t just surviving – they’re simplifying, localising, and building supply chains fit for the future.”

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When Measurement Goes Wrong, Everything Slows Down

Across freight, highways, and complex industrial environments, one quiet challenge creates delays, adds risk, and costs businesses more than they realise: inaccurate or incomplete measurement.

Picture this: a freight truck is being loaded. The cargo list is logged, the space is mapped out, and the deadline is tight. But something doesn’t add up. A load doesn’t fit as expected. A repack is needed. Time is lost. Multiply that by dozens of deliveries a day — and across hundreds of logistics hubs — and the margin for error suddenly becomes very expensive.

Now shift scenes. A maintenance team heads out to assess a stretch of highway infrastructure. They arrive with measuring wheels and manual tools, needing hours — sometimes days — to gather data that may already be out of date by the time it’s uploaded. It’s tedious, repetitive work that carries real safety implications when precision is off.

Or think about how often precise measurement plays a role in everyday operations — whether it’s mapping out storage space in a warehouse, checking clearances on a factory floor, laying out structures on a construction site, or planning safe movement in a transport hub. These environments are constantly changing, and even small inaccuracies can cause delays, create safety concerns, or force costly adjustments. Without dependable, real-time data, decisions are made on assumptions — and that’s when problems start.

In all of these scenarios, the same problem quietly holds things back: a lack of fast, accurate, and trustworthy measurement data.

That’s the challenge GPC, a UK-based software company, is solving — with a suite of intelligent 3D measurement systems designed to bring clarity and control to complex environments. GPC’s approach is rooted in precision — providing consistent, real-time data that helps teams move forward with confidence. GPC’s software is built to bring accuracy where it matters — supporting real decisions in fast-moving, real-world environments.

In freight, GPC’s software automatically measures cargo dimensions, reducing manual checks and helping operators optimise every inch of space — without guesswork or delay. In highways, GPC provides highway scanning for potholes and defects, this replaces slow, error-prone fieldwork with digital accuracy. Teams get the data they need safely and quickly, so projects stay on schedule.

And in bespoke environments — factories, warehouses, utilities, and more — GPC designs custom 3D solutions built around the client’s specific requirements. No unnecessary tools. No generic templates. Just systems that fit and function exactly where they’re needed.

The power of GPC’s solutions isn’t just in the measurement itself — it’s in the integration. Designed to work with existing control systems, planning tools, and digital platforms, GPC’s technology ensures that precise data doesn’t sit in isolation — it’s immediately actionable. The result? Fewer delays. Smarter planning. Safer outcomes.

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