Preparing governments for future shocks: Supply chain resilience

As geopolitical events, pandemics and natural disasters continue to disrupt worldwide supply chains, governments recognize their pivotal role in helping their nations and economies anticipate, respond to and recover from supply chain shocks. How can government leaders foresee potential challenges, plan responses ahead of time, and be ready to mitigate the impact of supply chain disruptions?
 

Supply chain experts convene in Washington, DC and Rotterdam to develop an action plan

To develop an action plan to build supply chain resilience at the governmental level, the IBM Center for The Business of Government, the IBM Institute for Business Value, the National Academy of Public Administration, and the American Chamber of Commerce in the Netherlands jointly sponsored roundtable discussions on “Preparing for Future Shocks: Modernizing Supply Chains.” These events, held in Washington, DC, and Rotterdam, brought together leaders and experts from government, business, academia, and the nonprofit sector to share learnings and develop practical and actionable recommendations for governments.

In a 2022 survey, 38% of global CEOs reported that supply chain disruption is one of their greatest challenges.

Combining resources to build supply chain immunity

During the roundtables, the participants discussed the need for governments to establish shared services or centers of excellence to develop protection against supply chain disruptions. After establishing these supply chain risk management organizations, governments would have the centralized resources to diagnose threats, design responses, sustain supply chains, and mitigate disruptions by building supply chain immunity.

A government-organized shared service would combine the resources of key agencies by providing real-time access to data on disruption effects. These centers of excellence would also deliver market intelligence, contribute insights into recovery actions, and offer access to experts who know what to do with this information.
 

Sustaining supply chains through risk mitigation and public-private collaboration

After establishing a visibility network and data collection protocols, a government-led supply chain shared service strategy can shift to a “sustain” mode. This includes the development of predictive models and partnerships with private-sector organizations to innovate and expand capabilities.

With the growing sophistication of predictive analytical tools, governments can build on insights gained from wargaming exercises to develop more accurate “what if” scenarios and contingency plans. Technologies such as AI and digital twinning could also be used to find out where supply chains can break down under stress conditions.

To improve supply chain resiliency, governments must foster strong partnerships with the private sector. These partnerships would also bring private industry experts into the shared service organizations set up by government agencies. By sharing information and developing mutual trust, governments and businesses can help each other adjust to a range of situations that could arise in an unpredictable, disaster-prone world.
 

Download the report and learn how government agencies can collaborate with private industry, align public-private sector supply chain priorities, and build resilience in preparation for the next wave of supply chain future shocks.