President Joe Biden recently convened the inaugural meeting of the Supply Chain Resilience Council, aimed at strengthening American supply chains and reducing costs for families. Despite the inclusion of various government bodies, there is a notable absence of industry participation. The White House emphasizes the fundamental role of robust supply chains in supporting a strong economy, citing their impact on lowering prices for goods and benefiting American families, workers, farmers, and entrepreneurs.

Acknowledging the challenges posed by the COVID-19 pandemic, the government plans to address supply chain issues by establishing partnerships with private-sector stakeholders. Initiatives extend beyond the U.S., including collaborations with the European Union, Japan, and South Korea to create an early warning system for semiconductor supply chain disruptions. The U.S. is also seeking emergency trade pacts with Canada and Mexico while fostering trade in the Western hemisphere through initiatives like the Americas Partnership.

Technology plays a crucial role, with the government implementing cross-governmental data-sharing capabilities and partnerships to enhance supply chain monitoring and strategy. The Department of Commerce’s Supply Chain Center integrates industry expertise and data analytics to develop innovative risk assessment tools. Collaboration with the Department of Health and Human Services aims to address foreign dependency vulnerabilities in critical drug supplies.

The Department of Transportation’s Freight Logistics Optimization Works (FLOW) program, a public-private partnership, is achieving milestones by creating a shared understanding of supply chain networks. FLOW participants are utilizing data to inform logistics decision-making, reduce bottlenecks, and enhance the resilience of the freight network.

While supply chain companies have faced challenges such as increased costs and reduced profit margins, the government’s initiatives, if implemented collaboratively with the industry, are expected to drive progress in 2024. The anticipation is that the recovering economy in 2024 will set the stage for industry success in 2025.

Inspired by: The president’s plan to strengthen US logistics – FreightWaves