The recent Executive Order from the White House on supply chain resiliency is poised to bring significant changes to supply chain management for US businesses. Unveiled at the inaugural meeting of the Council on Supply Chain Resilience on November 29, 2023, the comprehensive plan comprises over 30 targeted actions aimed at ensuring Americans have access to essential products, reliable deliveries for businesses, strengthening agriculture and food systems, and supporting quality jobs.
This November Executive Order builds upon President Biden’s initial Executive Order on American Supply Chains issued in February 2021, which called for a review of the nation’s supply chains. A central theme across many of the action items in the recent order is the importance of collaboration.
Collaboration is set to play a pivotal role from the highest levels, with the creation of the Council On Supply Chain Resilience, co-chaired by the National Security Advisor and National Economic Advisor, and involving more than 20 other government agencies. The council’s primary mission is to develop a long-term strategy for resilient supply chains.
But how will this initiative impact US businesses? Here are insights from three supply chain experts:
- Integrating Advanced Data Solutions: A key focus of the Executive Order is the establishment of cross-governmental supply chain data-sharing capabilities. One notable initiative is the creation of a Supply Chain Center hosted by the Department of Commerce. This center will integrate industry expertise and data analytics to develop innovative supply chain risk assessment tools. Experts believe this will enhance visibility and real-time accuracy in supplier data, enabling quick identification of alternative suppliers, cost improvement opportunities, and efficiency adjustments.
- Domestic Investment in Critical Areas: Another prominent theme is a commitment to ‘made-in-America.’ The Executive Order includes over $1 billion in government investments, including $275 million for the Advanced Energy Manufacturing and Recycling Grant Program. Experts see this investment as a significant step toward strengthening the US supply chain, providing a good return on investment for both public and private sectors.
- Deepening Engagement with Allies: While emphasizing ‘made-in-America,’ the Executive Order also recognizes the importance of global supply chains. A substantial portion of the action items focuses on “deepening engagement with allies and partners to strengthen global supply chains.” Experts highlight the need for diversified supply chain sources to reduce susceptibility to foreign economic shocks.
While President Biden’s Executive Order sets a clear policy direction for supply chain strength, its success will depend on the capabilities and collaboration of numerous public agencies. Given that the first Executive Order on improving US supply chains was nearly two years ago, progress may be gradual, but the initiative signals a significant shift in the landscape of supply chain management.