As part of the government’s work to improve the resilience of critical supply chains, the Department for International Trade (DIT) has developed a resilience framework which highlights 5 areas to be explored when reducing dependencies in supply chains.  Although the primary focus is on international supply chains, the areas of focus apply to local supply chains as well

It is designed to be an aide for those looking to mitigate supply side risks in their supply chains and to support greater long-term resilience.

The 5 areas are as follows:

  • diversification – identify alternate source of supply to create flexibility in the supply chain
  • international and local partnerships – work with international and local partners to identify common challenges, bring down barriers to trade and strengthen the resilience of supply chains and systems
  • stockpiling and surge capacity – identify whether it may be beneficial to hold stocks and strategic reserves of components or goods and consider whether surge capacity can be included in contracts
  • onshoring – (only for international) identify whether increasing or expanding domestic capacity might be helpful in reducing risks – or can you make items yourself
  • demand management – identify whether it may be beneficial to manage the demand for components or goods, considering substitutes and alternatives, innovation, and circularity

    The framework also sets out the importance of data and visibility in managing supply chains as well as noting the range of policy interventions which may be needed to take forward any of the areas.

    Data and visibility of supply chains should underpin all efforts to increase resilience and are crucial to support decision making. Having a clear picture of the supply chain is the first step in identifying where there are risks or vulnerabilities. This information will help inform which actions may be needed to reduce these risks.

    See the following for more information

    https://www.events.great.gov.uk/website/6264/safeguarding-supply-2/