Coming on the one-year anniversary of the White House’s Executive Order on Supply Chains, the U.S. Department of Transportation (DOT) recently issued a report that highlights what it called “vulnerabilities in our freight and logistics supply chain and clear-cut actions needed to speed up the movement of goods from ships to shelves.”
The report, “Supply Chain Assessment of the Transportation and Industrial Base: Freight and Logistics,” presents steps and approaches that can be taken by the federal government, Congress, states, and private companies to augment supply chains, both today and in the future.
“Decades of underinvestment in our infrastructure, unprecedented consumer demand amid our strong economic recovery, and continued pressure from the pandemic have all put immense strain on our supply chains,” says Transportation Secretary Pete Buttigieg. “This report lays out critically important steps we can take to help strengthen our supply chains, create good-paying jobs, and ensure that Americans can affordably and efficiently access the goods they rely on.”
In the report, DOT made it clear that the nation’s economic strength and quality of life are dependent on the safe and efficient movement of goods both throughout its borders and beyond. And it added that, in order for supply chains to perform well, they need to be successful in three key areas: transportation, production, and sourcing.
“Americans benefit when we bring manufacturing jobs, production, and sourcing to the U.S. rather than outsourcing them abroad,” the report explained. “Onshoring can drive down prices, add resilience, and let America own the industries of the future.”
“The report called out the need to build more
resilient supply chains to counter the many issues
that led to major supply chain challenges such as
temporary port closures, worker and equipment
shortages, increased levels of congestion and
delay as well as fluctuating prices.”
The report added that when supply chains are disrupted by events such as public health crises, extreme weather, workforce challenges, or cyberattacks, goods are delayed, costs increase, and Americans’ daily lives are affected. “While these disruptions cannot be avoided altogether, we can build supply chains that nimbly and effectively respond to minimize interruptions and keep goods moving under all conditions.”
To that end, DOT cited various factors that supply chains have faced, both domestically and globally, going back several decades including: growing freight demand; changing consumer preferences; attracting, training, and retaining a qualified workforce; increasingly complex, global supply chains where many products are manufactured abroad; rising frequency of disruption caused by climate change; and adapting to new technology while maintaining security.
What’s more, the report called out the need to build more resilient supply chains to counter the many issues that led to major supply chain challenges such as temporary port closures, worker and equipment shortages, increased levels of congestion and delay as well as fluctuating prices.
And it also makes the case for recommended policy responses that DOT envisions can support what it called “a resilient 21st century freight and logistics supply chain for America,” including:
- investing in freight infrastructure, such as ports, bridges, and railroads, to enhance capacity and connectivity;
- providing technical assistance to support the planning and coordination of freight investments and operations and supporting workers employed in this sector;
- improving data and research into supply chain performance;
- strengthening and streamlining governance to improve efficiency, build the workforce, increase competitiveness, and reduce safety and environmental risks; and
- partnering with stakeholders across the supply chain, including coordination with both the public and private sector.
As for some of the steps…
Read More: DOT report examines efforts to alleviate nation’s supply chain woes