Guest Expert Voices: Embracing Change to Create an Integrated Supply Chain
Today’s Guest Expert Voice post is authored by Chris Adderton, vice president of the Council of Supply Chain Management Professionals. Adderton most recently collaborated with Consumer Brands to release the report, U.S. Supply Chain Policy Priorities: The Case for a Federal Office of Supply Chain.
The challenges faced in the last year resulting from a global pandemic and political and social unrest have motivated an assessment of the status quo. These rapid structural changes have pushed business and individuals out of their comfort zones and presented new opportunities to evaluate — and improve — how we live, shop and work.
As a result, industry has placed a sharper focus on evolving supply chains, strengthening their functions, communication and visibility and working with partners to reduce risk and enhance efficiency.
Improving U.S. supply chains is no easy feat, nor one that should be taken lightly. In 2019, logistics accounted for $1.63 trillion — 7.6% of U.S. GDP. And with major disruptions becoming more prevalent — from pandemics to catastrophic weather — our supply chains are more vulnerable than ever before, putting our economic system at risk.
The task at hand is massive, spanning across industry and government. To realize positive outcomes, coordination between the federal government and the private sector is imperative.
To highlight this essential need and outline tangible steps government can take to strengthen supply chains, the Consumer Brands Association and the Council of Supply Chain Management Professionals (CSCMP) worked alongside researchers from Iowa State University on a new report, U.S. Supply Chain Policy Priorities: The Case for a Federal Office of Supply Chain. The recommendations included in this study lay out the priorities and investments necessary for our domestic supply chain to make significant and sustainable improvements to the benefit of consumers, businesses and the overall economy.
While the report outlines specific steps for infrastructure investment, talent development and greater consistency of regulations based on current technology, the key finding highlights the need for better coordination and alignment with government and the need for a federal office of supply chain.
The private market will always find ways to improve service and reduce cost, but the events of the last 12 months have made it clear there needs to be better alignment between public and private partners to achieve supply chain efficiency and resiliency.
The private market will always find ways to improve service and reduce cost, but the events of the last 12 months have made it clear there needs to be better alignment between public and private partners to achieve supply chain efficiency and resiliency. Especially as new technologies emerge and e-commerce rapidly expands, consumer expectations are changing, and the siloed, private sector supply chain of the past will not suffice. A modern supply chain is complex, requiring government integration to accelerate innovation, investment and productivity.
Establishing a federal office of supply chain would provide critical visibility across supply chains, offer consistent leadership, prioritize investment in infrastructure and enable more rapid adoption of improved processes and utilization of emerging technologies. The last year confirmed the need, but the value in the future is indisputable. Our domestic supply chain is critical to the economy, our security and the quality of life we expect in the United States.
Read our new report, U.S. Supply Chain Policy Priorities: The Case for a Federal Office of Supply Chain to learn more.
Published on March 1, 2021
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