The National Farming Association urges the government to stop reacting to supply chain disruptions and has proposed a method for anticipating the unforeseeable. Throughout the epidemic, supply networks have been stressed and proven to be deficient, with a lack of rapid-antigen tests rendering food aisles barren across the country. The National Farmers’ Federation wants to establish a cross-industry and civil society committee to plan for contingencies over the next six to twelve months.
The lack of RATs, according to NFF head economist Ash Salardini, is a prime example of a black swan occurrence, which is difficult to foresee by its very nature.” However, we might have forecast many black swan incidents in the last two years, and that’s where the failure has been,” Mr Salardini added. Because the nation’s supply chains are so extensive and complex, no single individual can know everything, which is why the NFF wants to bring together a diverse group of specialists to discuss the major opportunities and problems in respective disciplines.
Adblue is a wonderful example of a near-miss – hardly one understood what it was unless they worked in the transportation or logistics industries, but most big vehicles can’t operate without it. A supply chain can be brought down by the most innocuous of occurrences, such as an increase in energy prices. China was caught off guard by its energy crisis, which saw the availability and cost of electricity skyrocket during the Chinese winter, forcing factories to close in order to focus on heating and electrical supplies for personal use. We must consider adding some fat to vital supply chains such as electricity and food, which will, of course, come at a cost.”
Mr Salardini praised the administration for the sheer effort and willpower in averting many near-miss supply chain crises, but said the time for the reactive policy was passed. “It’s simple to throw rocks, but the governments have gotten us through a lot of hard patches,” he added. “But now is the moment to move away from playing what’s in front of you and toward a solid plan.” The reactive approach has gotten us through a number of disasters and crises, including the Adblue and container shortages. However, reactionary policing can only function for so long before everyone tires and the system becomes ineffective.
Article by: Hari Yellina (Orchard Tech)