Australia is 17th overall in the 2020 FM Global Resilience Index, yet we are 22nd in Supply Chain resilience.
Some of the indicators show more work is needed around Productivity. Here we are in a BAD state – we have given away our ability to manufacture. Instead, we dig stuff up/grow it, sell it to make a small profit, then we BUY it back at a huge price after it has had ‘value’ added. Economics-101 tells you that is a dumb idea.
Then there is our Corporate Governance (hmm, maybe this one applies to corporate AND Government) & Infrastructure – things we have just ignored or because there are some who didn’t want us to see, either way. we are now realising these also bite if not monitored and kept up to standard.
There are less insidious ones, for example Exposure to Natural Hazards. We are aware of these, we just need to do more about working to reduce the risk. And this is the sad thing, we just got so apathetic on preventing unnecessary outcomes from fires, floods and storms.
There are two we need to keep an eye on as they are based on outside forces: specifically our reliance on imported oil – we only have a stockpile of around 26-30 days. Options being proposed will not address the need if we start running out (if there was a double hit covid-19 AND an oil shortage – Australia will not slow down, it STOPS.
The other issue to watch is our cyber-security, as an island nation, a long way from the rest of the world, a catastrophic cyber hijacking or cyber war, or whatever, would be devastating
Supply Advantage 