Preparations for the UK Exit from the EU (Brexit)
Along with the many UK companies, Tunstall Healthcare has taken active steps to assure business continues as normal in the run-up to, during the transition and post-Brexit.
At this time, no-one understands the full impact of Brexit, however; we have examined all areas of our business and supply chain to understand any potential risk areas and are confident that the potential impacts of Brexit are understood and suitably mitigated.
Tunstall supplies a mix of in-house designed and manufactured product and 3rd party product. Tunstall has one manufacturing site located in Whitley, Yorkshire.
UK Borders – Stock Holding
Tunstall stock holding does not rely on ‘just-in-time’. For a significant proportion of component stock, Tunstall hold at least two weeks of stock in Tunstall’s warehouse and suppliers holds 4-6 weeks of buffer stock in their warehouse according to the specific Logistics Agreement held with individual suppliers. At a finished good level Tunstall typically holds a minimum of two weeks of stock.
Many components have a global footprint. Tunstall’s largest component distributor has carried out an analysis of the origin of the components used in our products. Their findings conclude that 98% 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 Tunstall and some of the stock currently warehoused by suppliers in the EU will be held at a UK location.
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.
The majority of our parts which originate from outside of the UK are procured using local currency. Our purchasing profile is typically 50% USD, 25% EUR, 25% GBP.
The current directives and standards governing Tunstall products and services will still apply.
Product markings may change in the event of a no deal scenario. In this case, the CE mark may no longer be applicable for sale within the UK and may be substituted by an alternative mark. This has not yet been confirmed.
Tunstall will be able to supply our 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.
Manufacturing and Response
Tunstall Healthcare Ltd operates from our UK headquarters in Yorkshire. Our workforce is primarily sourced from the local area for manufacturing with a supporting network of UK-wide engineers. The proportion of non-UK nationals in our overall workforce is small and will be managed in accordance with any legal or regulatory requirements.
We consider our workforce to be at minimal risk and that our ability to maintain delivery in the post-Brexit environment will not be compromised.