Australian to review global supply chain policy

The Australian Department of Defence (DoD) is to launch an independent review into the effectiveness of its policy of supporting local companies' access into foreign production and supply networks.

The DoD said on 21 July that the review of its Global Supply Chain Program (GSCP) will start later this month as part of wider reforms to increase opportunities for local companies in Australia and overseas.

The review's objective is to evaluate the performance of the GSCP and its alignment with the DoD's stated intention to develop a “robust, resilient, and internationally competitive” defence-industrial base.

Minister for Defence Industry Melissa Price said the review will enable the DoD to provide “targeted support” and incentives for local firms looking to expand in international supply chains.

Price said, “The independent review of the GSCP will identify how we can better position Australian businesses to meet Defence's future requirements.”

She added, “We need these small and medium businesses to be a part of our robust, resilient, and internationally competitive Australian sovereign defence-industrial base. They must be aligned to our whole-of-government plan to support the economy and achieve our strategic and capability goals.”

The review of the GSCP was recommended in 2020 as part of a wider assessment of the Centre for Defence Industry Capability (CDIC): the government organisation that manages the supply-chain initiative.