As the inauguration of the forty-sixth president of the United States approaches, one of the policy areas that could benefit businesses the most has been identified. The Biden-Harris Administration plans to examine and address the fragility of supply chains. The standard business networks are said to remain rocky after the COVID-19 pandemic.
One of the planks of the policy is designed to make the U.S. more resilient in the face of crises. This includes measures to address the problems securing vital protective and medical materials in the early days of the coronavirus. This probably means developing a supply-chain policy that centers on weaning the U.S. off China.
According to Biden’s own website: “The goal here is not pure self-sufficiency, but broad-based resilience. Biden’s plan will strive to ensure that America doesn’t face a shortage of vital goods — to deal with any future crisis or fundamental national need.”
Commenting on these likely measures for Digital Journal is Richard Barnett, chief marketing officer at Supplyframe (which supports the global electronics value chain).
According to Barnett, what is being discussed is: “Law firm Baker McKenzie is suggesting that the next U.S. administration work with businesses to localize production and leverage more suppliers from nearby countries to make supply chains more resilient.”
While the lofty policy goals are worthy, Barnett explains that companies can do more in the short-term by adopting a risk centric approach. He advises: “Another important way to increase supply chain resilience, and reduce the chances of product shortages and product launch delays or cancellations, is by doing cross-functional risk assessments at the onset of new product introduction. ”
Barnett advises: “This involves cross-functional communication and real-time information knowledge sharing — starting with risk intelligence and progressing to a collaborative bill of materials.”
