Teleos and Brexit

With the continued uncertainty surrounding the UK’s exit from the EU on 29th March 2019 we have been planning, so far as any business can, to mitigate the effects of all possible outcomes. Our clear objective is to maintain a high level of customer care with minimum disruption, irrespective of the exit scenario.

There are a number of products and services that we supply to our clients that have been subject to review:-

1. Software Support
We do not foresee any issues with our ability to continue to provide support services, irrespective of your location. Obviously this is of greatest concern to our Irish and Norwegian clients, but it is extremely unlikely that there will be any interruption to broadband services across the globe.

2. Cloud Servers
A number of Teleos users run on cloud servers. The servers that we use are physically based in France, so there is no issue for our Irish practices. Whilst we do not believe that there will be a post Brexit issue for UK practices, we are continuing to monitor the situation and will move UK based practices to UK based cloud servers should the need arise. It should be noted that there may be a cost in doing so in higher rental and setup charges.

3. Hardware Supply
In the event of a no deal Brexit, it is envisaged that there may be significant delays shipping physical goods in and out of the UK. If we revert to WTO tariffs then it is likely that additional costs will be incurred. In fact, we have already seen quite sizeable increases in the cost of Dell hardware in particular, and other suppliers will inevitably follow suit. Whilst we will try and absorb some of these additional costs, it is inevitable that prices may rise by up to 10%.

We are in the process of increasing our stock holdings in case of supply issues. However, it is obviously recommended that, if you know that you are likely to need additional hardware, you let us know well in advance of March 29th.

Clients based in Ireland will be most affected, particularly if the border issue is not resolved. In the worst case scenario, clients can always source hardware locally and Teleos staff can configure it remotely.

4. Dispensing Label Supply
We recognise the need to keep a constant supply of dispensing labels available. We have been using the same manufacturer for the best part of twenty years and many of their raw materials come from within the EU. They have already had assurances on supply and are holding larger stocks of raw materials themselves.

We have never had a supply issue in the past 20 years as the manufacturer keeps a rolling 3 month stock at their warehouse for monthly call-off. However, as a precautionary measure, we are now having a further batch of labels manufactured and will keep a 6 month rolling supply. We have not been advised of any increases in raw material costs but again, WTO tariffs may well come into play at some point.

If you are in the Republic Of Ireland, it is highly recommended that you order dispensing labels well in advance of when you need them. It might be an idea to keep some spare rolls of labels as a contingency.

We are continuing to monitor and review the situation and will make further announcements as and when required. Please do not hesitate to contact us if you have any immediate concerns.

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