As businesses throughout Australia have faced unprecedented disruptions across their international supply chains the topic of supply chain resilience has never been so hotly discussed.
To address the critical supply needs revealed by the COVID-19 pandemic the Australian Government has announced the launch of the Supply Chain Resilience Initiative. Being on the front foot has never been more important and it is expected that this initiative will put Australia in a strong position to respond to future supply chain disruptions.
Understanding supply chains
The goal of the initiative is to build a comprehensive understanding of critical supply chains. The government will work with industry to:
- identify the essential goods and services critical to Australians at times of crisis
- map supply chains and Australia’s manufacturing capabilities
- evaluate supply chain resilience under normal circumstances and in possible crisis situations
- work with industry to identify supply options to address vulnerabilities in domestic and international supply chains for identified critical products.
Domestic and international supply vulnerabilities
The government will work with industry to identify supply options for critical products to address vulnerabilities in domestic and international supply chains.
This could mean:
- long-term international supply contracting
- domestic manufacturing
- broader activities to promote better information sharing and collaboration between industry and governments
From 1 July 2021, businesses can access support to establish or scale a capability that addresses a supply chain vulnerability.
To be eligible for funding, projects will need to:
- demonstrate they address a supply chain vulnerability for a critical product or input identified in a Sovereign Manufacturing Capability Plan
- result in the measurable strengthening of the supply chain
Guidelines outlining eligibility and merit criteria will be made available in the first half of 2021.
The Minister announced initiatives to transform Australian manufacturing on 1 October 2020.