The Biden Administration has made it clear that the U.S. needs a resilient, diverse and secure supply chain to ensure economic prosperity and national security.
Following a 100-day interagency review of domestic supply chains, the White House released a 700-page report on its assessment, and suggested policy recommendations for strengthening critical U.S. supply chains and addressing current vulnerabilities. The Administration also announced plans to invest $400 billion in procurement spending, with a focus on medical supplies and equipment, as part of its “Buy American” agenda.
The Administration’s push to rethink U.S. supply chain management is largely in response to the enormous disruption caused by the global pandemic. Within the public sector, the ongoing health crisis has placed incredible pressure on supply chains to deliver personal protective equipment (PPE), medical equipment and vaccine doses, among other goods. At the same time, governments face pressure to manage costs and maximize efficiencies. In the wake of these challenges, governments are learning and adapting to diversify, manage and rebuild their supply chains.
As the recovery continues, governments at all levels and jurisdictions need to place a key importance on the following supply chain measures.
Increase visibility through advanced technology. Many government procurement systems continue to be disjointed. By integrating procurement systems where possible on the municipal, state and federal levels, governments can better leverage their purchasing power. Relying on advanced analytics and machine learning technology across connected procurement systems also allows governments to conduct due diligence checks across their supply chains and identify risks or vulnerabilities, such as an overreliance on a single supplier or geographical area. During the pandemic, for instance, it became clear there was an overreliance on Asian manufacturers for critical goods, like PPE.
Internet of things (IoT) sensors and other tracking devices allow for real-time insights across supply chain operations, from pallets and containers to trucking and rail transport. Through IoT technology, governments gain visibility into potential shortfalls early, allowing leaders to plan accordingly to avoid gaps that might interfere with recovery efforts and patient care.
A string of recent cyber-attacks, including the SolarWinds hack, raised another vulnerability within public sector supply chains: security. To shore up vulnerabilities, the Department of Defense adopted the Cybersecurity Maturity Model Certification (CMMC), which requires companies bidding on defense contracts to certify that they meet basic levels of cybersecurity standards. The standards are meant to mitigate risks for the government and its partners. Other government agencies on the federal, state and local level are considering adopting such a mandate as a means to better protect intellectual property.
Establish a more diverse range of suppliers and vendors. The pandemic highlighted the shortfalls that can happen when governments rely on just one or two tiers of suppliers, or manufacturers within a single geographic area. By creating a larger pool of suppliers and vendors, governments will be better positioned to fulfill different needs, from disaster recovery to ongoing use within the public domain. Getting to know each supplier intimately also allows agencies to monitor the group to detect potential problems, and positions them to work together to address unforeseen circumstances. Although regional or local supply chains can be more expensive, agencies can gain greater control over inventory, and move the product closer to the end users.
Additionally, the Biden Administration wants to set a goal of ensuring that at least 23% of federal contracts be awarded to small businesses. In part, the U.S. can attract new and smaller suppliers if it prioritizes transparency, engagement and clear communication, including sharing better information on procurement plans. In turn, building a larger supplier network enables governments to select an alternative supplier to deal with disruption and ensure operational continuity. Additionally, sharing government procurement forecasts can help suppliers better plan and be more prepared to respond to government needs. Similarly, predictive maintenance tools can support global collaboration efforts between suppliers and partners like defense organizations and UN members.
While it’s impossible to limit the threat of disruption, the public sector can and should take more steps to improve the resiliency of its supply chain. Doing so will enable governments to deliver value to constituents more efficiently and effectively, and better prepare them for tomorrow’s unforeseen challenges.
Mark Morley is senior director of product marketing, and Brian Chidester is senior industry strategist for public sector, at OpenText.
The Biden Administration has made it clear that the U.S. needs a resilient, diverse and secure supply chain to ensure economic prosperity and national security.
Following a 100-day interagency review of domestic supply chains, the White House released a 700-page report on its assessment, and suggested policy recommendations for strengthening critical U.S. supply chains and addressing current vulnerabilities. The Administration also announced plans to invest $400 billion in procurement spending, with a focus on medical supplies and equipment, as part of its “Buy American” agenda.
The Administration’s push to rethink U.S. supply chain management is largely in response to the enormous disruption caused by the global pandemic. Within the public sector, the ongoing health crisis has placed incredible pressure on supply chains to deliver personal protective equipment (PPE), medical equipment and vaccine doses, among other goods. At the same time, governments face pressure to manage costs and maximize efficiencies. In the wake of these challenges, governments are learning and adapting to diversify, manage and rebuild their supply chains.
As the recovery continues, governments at all levels and jurisdictions need to place a key importance on the following supply chain measures.
Increase visibility through advanced technology. Many government procurement systems continue to be disjointed. By integrating procurement systems where possible on the municipal, state and federal levels, governments can better leverage their purchasing power. Relying on advanced analytics and machine learning technology across connected procurement systems also allows governments to conduct due diligence checks across their supply chains and identify risks or vulnerabilities, such as an overreliance on a single supplier or geographical area. During the pandemic, for instance, it became clear there was an overreliance on Asian manufacturers for critical goods, like PPE.
Internet of things (IoT) sensors and other tracking devices allow for real-time insights across supply chain operations, from pallets and containers to trucking and rail transport. Through IoT technology, governments gain visibility into potential shortfalls early, allowing leaders to plan accordingly to avoid gaps that might interfere with recovery efforts and patient care.
A string of recent cyber-attacks, including the SolarWinds hack, raised another vulnerability within public sector supply chains: security. To shore up vulnerabilities, the Department of Defense adopted the Cybersecurity Maturity Model Certification (CMMC), which requires companies bidding on defense contracts to certify that they meet basic levels of cybersecurity standards. The standards are meant to mitigate risks for the government and its partners. Other government agencies on the federal, state and local level are considering adopting such a mandate as a means to better protect intellectual property.
Establish a more diverse range of suppliers and vendors. The pandemic highlighted the shortfalls that can happen when governments rely on just one or two tiers of suppliers, or manufacturers within a single geographic area. By creating a larger pool of suppliers and vendors, governments will be better positioned to fulfill different needs, from disaster recovery to ongoing use within the public domain. Getting to know each supplier intimately also allows agencies to monitor the group to detect potential problems, and positions them to work together to address unforeseen circumstances. Although regional or local supply chains can be more expensive, agencies can gain greater control over inventory, and move the product closer to the end users.
Additionally, the Biden Administration wants to set a goal of ensuring that at least 23% of federal contracts be awarded to small businesses. In part, the U.S. can attract new and smaller suppliers if it prioritizes transparency, engagement and clear communication, including sharing better information on procurement plans. In turn, building a larger supplier network enables governments to select an alternative supplier to deal with disruption and ensure operational continuity. Additionally, sharing government procurement forecasts can help suppliers better plan and be more prepared to respond to government needs. Similarly, predictive maintenance tools can support global collaboration efforts between suppliers and partners like defense organizations and UN members.
While it’s impossible to limit the threat of disruption, the public sector can and should take more steps to improve the resiliency of its supply chain. Doing so will enable governments to deliver value to constituents more efficiently and effectively, and better prepare them for tomorrow’s unforeseen challenges.
Mark Morley is senior director of product marketing, and Brian Chidester is senior industry strategist for public sector, at OpenText.