When will the government supply chain speak out?

The U.S. Government buys a lot of “non-essential” stuff every day. In fact, it’s the largest single purchaser on the planet, with an annual spend of approximately $500 billion. The Department of Defense accounts for about 70% of the total. That means the shutdown that has emptied office buildings in Washington, DC is also squashing a supply chain that crosses the country and the globe. Military jets may still be filling up to fly, but the machine shops that make spare parts or prototypes for fighting vehicles are in a very risky position if they are still delivering product without any assurance they will be paid. And, with the closure of the FAA, new aircraft orders cannot be delivered to 4 airlines so far.
Recall how support for a federal bailout of GM and Chrysler grew as Congressmen started realizing that they weren’t just helping a couple of Detroit-based businesses, they were sustaining a network of stakeholders that represented virtually every Congressional district. They included dealerships as well as suppliers two or three tiers deep in the automotive supply chain.
So far we’ve mostly heard from bureaucrats on furlough describing the impact of a government shutdown. I wonder when the government supply chain will stand up and speak?


One response to “When will the government supply chain speak out?

  1. With so much uncertainty, end-to-end supply chain visibility becomes essential for navigating the choppy wake the government shutdown has created so far. Visibility to monitor which crossings have the shortest delays, and flexibility to optimize in-transit shipments to these locations, is crucial to minimize supply chain disruptions. Time will tell the true government shutdown impact on the supply chain. http://www.gtnexus.com/blog/supply-chain-visibility-2/what-the-u-s-government-shutdown-means-for-supply-chain/

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