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Dept. of Commerce Announces New Actions on Supply Chain Resilience

Dept. of Commerce Announces New Actions on Supply Chain Resilience

Sept. 13, 2024
The agency launched SCALE which uses indicators to assess structural supply chain risk. 

At the inaugural Supply Chain Summit, held on September 10 and  sponsored by the  Department of Commerce in collaboration with the Council on Foreign Relations, new actions were announced.

“The actions we’re taking at the Commerce Department to secure our supply chains are possible because of the work we’ve done since day one to leverage our innovative expertise and capabilities to put risk assessment and resiliency at the forefront of our commercial engagement,” said Deputy Secretary of Commerce Don Graves, in a statement. “We remember the dark days of COVID and what it felt like when medical devices, PPE, critical technologies, and everyday household appliances were out of reach. That’s why mitigating the impact was step one and turning reactive policies into proactive policies became our second chapter, which is precisely what was on display at the Supply Chain Summit.”

The following actions will be undertaken by the Industry & Analysis business unit within the International Trade Administration:

Launched SCALE Tool: Department of Commerce’s Supply Chain Center unveiled a first-of-its kind diagnostic supply chain risk assessment tool—known as SCALE—which utilizes a comprehensive set of indicators to assess structural supply chain risk across the U.S. economy.  The SCALE tool, coupled with the I&A’s deep industry expertise, will enable the U.S. Government to be more proactive and strategic in addressing supply chain risk. The tool compares risks across industries and provides an in-depth assessment of what is driving those risks. SCALE will inform U.S. government decision-making and can facilitate data-driven conversations with industry on risks, opportunities, and actions that can advance supply chain resilience.

SCALE Tool Findings: During the Summit, Assistant Secretary Grant Harris shared how the Supply Chain Center developed SCALE and highlighted its intended use cases. Looking ahead, the Center will release key findings from the SCALE tool, coupled with relevant insights from I&A’s industry experts, and engage industry and other key stakeholders on the results.

SCALE Tool Data Competition:  I&A plans to launch a competition aimed at developing new data or analysis that can be used to expand the indicators of risk incorporated into the SCALE tool. 

Convening on AI Data Centers: This fall, Secretary Gina Raimondo will convene industry to discuss risks associated with the supply chains for AI data centers, focused on the products and industries identified by I&A stakeholder engagement, in-house expertise, and the SCALE tool. The convening will bring both upstream and downstream suppliers and customers together to assess current and future bottlenecks and risky dependencies, all while helping to inform recommendations on steps both industry and government can take to mitigate identified risks.

Industry Supply Chain Tabletop Exercises: In 2025, I&A will conduct two tabletop exercises with industry to better understand opportunities to address structural supply chain risks faced by the United States. One exercise will focus on supply chain risks in the chemicals industry; the second will focus on an emerging technology where it is critical the United States maintain a strategic advantage.  

New Strategic Partnerships: At the Summit, seven new strategic partnerships with key stakeholders across industry and academia were announced. These partnerships will help the Department promote the global competitiveness of U.S. industry, help businesses become more resilient, and make its supply chain work more innovative and impactful. The new partners are:

  • National Small Business Association
  • Association for Supply Chain Management
  • Council for Supply Chain Management Professionals
  • Institute for Supply Management
  • Industry Studies Association
  • Carnegie Mellon University
  • Georgetown University

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