Office of Supply Chain Resilience

We identify and monitor critical supply chain vulnerabilities.

We focus on critical supply chain vulnerabilities that could impact Australia’s national interest.

This includes our:

  • ​health, safety or wellbeing
  • economic stability and viability
  • national security
  • international partners.

We advise the Australian Government on supply chain risks and potential actions to improve resilience.

Our work has ensured ongoing access to essential goods and services including:

  • ​personal protective equipment (PPE)
  • critical pharmaceuticals
  • agricultural chemicals
  • semiconductors
  • telecommunications equipment
  • water treatment chemicals
  • critical plastics.

Working with industry

We engage directly with targeted sectors to help us understand Australia’s supply chain risks. These business insights can provide early warning signs of disruptions to critical supply chains.

We also host a supply chain roundtable with peak bodies across key manufacturing and services sectors, including:

  • healthcare
  • food production
  • chemicals
  • construction.

Partnering with countries on global supply chains

We are working with the United Kingdom (UK) on a joint supply chain resilience initiative. The project provides capability building support to interested countries through shared insights and approaches.

The initiative supports interested countries to:

  • improve public sector approaches to building critical supply chain resilience
  • strengthen global supply chains through shared learning and coordinated action
  • build greater transparency into key global supply chains
  • promote international action to respond to disruptions.

Supply chain resilience framework

We apply the following framework to identify and address disruption risk in Australia’s critical supply chains. The framework helps Australian Government agencies assess:

  1. Vulnerability through:
    • quantitative and qualitative analysis
    • government and business data sources
    • engagement with stakeholders
    • scenario analysis.

       
  2. Criticality by measuring the potential impact of supply disruptions on Australia's national interest.

     
  3. Residual risk by understanding whether industry has enough opportunity, capacity and incentive during disruptions to:
    • prevent
    • absorb
    • adapt (substitute) or
    • transform processes.

       
  4. Targeted and proportionate responses by considering which policy is most appropriate to manage any residual risk.

Types of policy responses

The framework includes 4 types of policy responses. These aim to:

  • address supply chain disruption risks
  • avoid unnecessary costs. 

Response type

Examples

No regrets action

  • organising private investment
  • information sharing
  • international collaboration
  • reducing trade barriers
  • deregulation for business
  • managing market efforts.

Responsive support

Following a disruption to help businesses:

  • ration or extend current supplies
  • find alternate supply sources
  • use substitutes
  • adapt production processes.

Pre-emptive support

To help businesses prepare before a disruption , including:

  • stockpiling
  • contingent contracting arrangements
  • building in pivotable capabilities before a disruption occurs.

Onshoring and restrictions

To limit exposure to global supply disruptions by developing:

  • sovereign capability
  • time-limited export restrictions
  • mandatory import concentration thresholds.

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