Productivity Commission review gives additional focus into the supply chain
On 19 February 2021, the Federal Treasurer requested the Productivity Commission (Commission) undertake an independent review (Review) “into supply chain vulnerabilities and risks” to “ensure that the Australian economy is prepared for “possible supply chain disruptions”.
The Terms of Reference for the Review suggest it originates from the COVID-19 pandemic and while Australian supply chains proved to be “resilient”, the circumstances highlighted potential vulnerability to global supply chain disruptions. Accordingly, the scope of the Review has been set as follows;
- consider the factors that make supply chains vulnerable.
- develop a framework for identifying supply chains that are vulnerable to the risk of disruption and also critical to the effective functioning of the economy, national security and Australians’ wellbeing.
- use trade and other relevant data to identify supply chain vulnerabilities.
- explore risk management strategies, including the roles of, and options for, government and businesses to manage supply chain risks.