Ti: UK is the latest to develop a ‘Critical Supply Chain Strategy’

12/02/2024

TRANSPORT INTELLIGENCE‘s John Manners-Bell writes:

Following the example of the US, the UK government has established a ‘New Critical Imports and Supply Chains Strategy’ which it says is designed to safeguard the economy from global supply chain shocks. It is hoped that a variety of initiatives will help UK companies and institutions build strong and resilient supply chains and avoid dependence on protectionist or ‘coercive’ states. The strategy comes in response to increased geopolitical disruption and other recent challenges such as the Covid pandemic, Russia’s invasion of Ukraine and environmental disasters.

The government defines ‘critical’ supply chains as those which, if disrupted, would cause a high likelihood of a ‘moderate to catastrophic’ impact on:

– essential services

– life (including medicines and delivery of patient care)

– a strategic economic sector or the economy as a whole, including those sectors critical for reaching net zero and

– national security, including the functioning of the state and public order.

The strategy has major parts which involve:

– Making the UK government a centre of excellence for supply chain analysis and risk assessment by better understanding broader supply chain systems, including transport routes and infrastructure.

– Removing critical import barriers to support the UK’s ‘business-friendly’ environment.

– Building the UK’s response to global supply chain shocks by expanding the capability to forecast and respond to external events, from extreme weather to geopolitical incidents.

– Ensuring the UK can adapt to long-term trends, building resilience and working in successive G7s to bring international partners together.

– Expanding collaboration between government, business and academia.

It is very welcome that the UK government has recognised the vulnerability of the economy to disruptions in global supply chains and is prioritising a response. Even so, the role which government can play in creating resilience is limited, given that private businesses are the ones responsible for making the majority of supply chain decisions…

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