With less than a few weeks and counting to the end of the transition period before the UK breaks all ties with the EU, at Mosca Direct Ltd., preparations are well and truly in hand.
If end-of-line reliability is important to your business, you already know and appreciate the Mosca brand stands for excellence in strapping solutions and end-of-line process.
Mosca strapping machines offer the perfect solution for securing pallets, packages, totes, and cardboard packaging for transportation that are used in a variety of sectors including Pharmaceuticals, Retail, Corrugated, FMCG, Mail Order and Logistics.
Mosca’s extensive product portfolio has a machine suitable for any requirement; from compact semi-automatic free-standing machines for strapping smaller packages, to large fully automated strapping machines which can strap whole pallets of heavy goods and easily be integrated into existing end-of-line processes or new production lines. Mosca also offer a large range of high-quality strapping materials in both PP (Polypropylene) and PET (Polyester) which work in perfect synergy with strapping machines.
Sustainability is very important to the Company whose PET strapping has been produced from 100% recycled material for some time – great strides are being made in increasing the amount of recycled materials in their PP strapping range too. Lastly, they are the first manufacturer to patent PLA Strapping (Poly Lactic Acid) a product under continuous development which is made entirely from renewable resources.
Mosca strap comes in an array of sizes, widths, thicknesses and colours and they feel confident that they have material suitable for any strapping requirement, whether it is delicate printed goods or rugged construction material.
Northern European Hub
Mosca’s international distribution, service and consulting network enables global service for customers. Based in Waldbrunn (Germany), the family company was founded in 1966 and is present in 17 countries with 22 offices and six production sites in Germany, Malaysia, Canada and USA. It employs over 1,000 staff. With continuous new developments, the strapping experts have maintained quality and technology leadership in the strapping sector for more than 50 years.
As a Mosca GmbH subsidiary based in Cotgrave, Nottinghamshire, and headquarters for its operations in Northern Europe, Mosca Direct Ltd. has had to prepare for Brexit and the possible impact of a no-deal situation.
Due to the corona pandemic, Brexit was only a marginal phenomenon in the British media for a long time, explains Managing Director, Gaye Tate. The impending exit from the EU has only become a front-of-mind issue again in recent weeks. “People have lost their fear of Brexit and will only realise the impact when they are affected themselves, when products in the supermarket become expensive or there are travel restrictions,” she suspects.
“The real possibility of a ‘No Deal’ scenario has made some of our customers very nervous,” says Tate.
The UK subsidiary provides a “significant part” of Group turnover, “especially since the entire Northern European business runs through the branch in the United Kingdom”, explains CEO Timo Mosca in a recent interview with the German newspaper, RNZ. The biggest problem with Brexit is the uncertainty that has persisted since 2016: “Nobody knows whether London and the EU will still come to an agreement, nobody can plan for the future with certainty,” criticizes the entrepreneur. Should there be a hard Brexit, he mainly fears delays due to customs controls at the border.
Increased Costs
Despite the unprecedented challenges of Covid-19, which at times has meant that Brexit planning has had to take a back-seat, Mosca Direct Ltd. has continued to push hard and invest in the business. They have strengthened links with partners to help ensure that customers are well-placed to make the most from the opportunities created by the imminent post Brexit landscape.
To help co-ordinate their customer-focussed Brexit preparations, the company created a Brexit task force consisting of five team members appointed from all areas of the business. This was to help identify and negate any risks or pitfalls – good or bad. The team meet via a weekly video call and discuss potential issues or challenges with proposed solutions. This helps ensure Mosca Direct maintains and improves its supply chains, commitments, and high service levels to customers.
For example, they have made internal changes to invoices to include more information: they understand that Brexit is about data. Missing information may cause delays and so they are working on all aspects of supply chains to minimise risks in as many areas as possible.
They are attending many webinars and talking to other organisations to see the steps that they are taking to avoid delays or issues. They have found that LinkedIn is a great place to speak to other businesses – after all, “we are all in this together.”
“We have already taken several prudent steps to deal with any potential difficulties arising from customs controls and supply chain management issues. For example, our on-site storage capacity has been doubled to 12,000 square meters, which means that strapping material can be buffered for between four and six months. After all, in an emergency, spare parts must reach our customers quickly.” reassures Catherine Curcic, Operations, Finance & IT Director.
To be on the safe side, many customers are already building up their own stock reserves. “Our packaging machines are at the end of the manufacturing process. If something comes to a standstill, the whole production comes to a standstill,” explains Mosca. The operating costs of the UK subsidiary have increased by four to five percent due to the precautionary measures taken.
Another economic aspect that one must also be prepared for is fluctuations in the exchange rate. While one euro is currently around 89 pence, “parity will be achieved in the medium term,” said Mosca. He is already calculating with a one-to-one exchange rate. How possible tariffs could affect the entire trade as well as its company, “today nobody can foresee”.
Despite all the uncertainty, the family-owned business wants to stay in the British market. 36 employees take care of the domestic and northern European business in Cotgrave. “When the wind changes direction, the captain readjusts the sails and does not turn the boat,” explains Mosca. He is interested how the UK’s exit from the EU will affect the UK economy. “If Brexit goes badly for the British, they will be an example for other EU countries contemplating leaving the bloc. But if they exit successfully, that too will certainly have its’ consequences.”
The measures taken by Mosca Direct Ltd. are intended to ensure uninterrupted supplies and reliable machine performance for customers as well as considering the unexpected difficulties that could arise from a possible hard Brexit.
In these unprecedented times, it is the support of employees which make a real difference to what can be achieved in any business. “I would like to thank our staff for their professionalism, resilience and immense dedication in helping Mosca Direct Ltd. to achieve what we have so far, especially those who have been directly involved on the frontline with our Brexit Support Unit” added Tate.
For more information, please visit the Mosca website: www.mosca.com/en-uk or follow on LinkedIn: www.linkedin.com/company/mosca-direct-limited
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