National Reserves and Acquisitions Tactics Prioritizing National Benefit!
Mask madness: The COVID-19 pandemic caught the globe off guard, with shortages of not just ventilators and PPE but even of basic necessities like toilet paper and food. It wasn't long before healthcare professionals were fighting tooth and nail for protective gear, their safety and the lives of their patients at stake.
N95 masks, once an alien concept to most, became the latest prized items. In the United States, this prompted the realization that there were, in fact, national stockpiles of such essential supplies. The Strategic National Stockpile (SNS) serves as the national repository of antibiotics, vaccines, and other critical medical supplies, designed to support local responders in a public health emergency.
Yet, the SNS proved to be insufficient in addressing the pandemic-induced demand for masks, ventilators, and PPE. In Canada, it turns out that expired equipment was to blame for the shortfall. Despite the existence of such stockpiles, the failure to rotate the stock led to equipment going stale and thus becoming unusable.
The global health crisis called for a radical reassessment of strategic reserves across the globe. It has highlighted the need for stronger, more dynamic inventory management systems—and not just for medical equipments. Rather it extends to a wide range of products, from rare earth elements to maple syrup and helium.
As we continue to fight the pandemic, it's crucial to keep our eyes on the prize: protecting the healthcare workers who selflessly serve on the frontlines. To that end, several steps can be taken to improve our strategic preparedness for future crises, ensuring adequate stockpiles and a more robust response.
- Demand forecasting: Leveraging models of the current pandemic as well as potential future scenarios can help create more accurate demand plans, informing the optimal levels of stockpile for various critical items.
- Reassessment of strategic SKUs: Rethinking what products belong in the strategic stockpile may be in order, including second- and even third-level components and raw materials that are necessary for the production of vital end products.
- Source mapping: Developing a clear and unambiguous list of current and potential manufacturers and suppliers is essential for ensuring a steady supply of critical products. This should include their standard and stretch capacity levels.
- National vs. international sourcing: Countries may be compelled to develop more robust domestic sources for critical suppliers due to events like the US's restriction on 3M's mask exports.
- Active inventory management: Preventing the decay, obsolescence, or degradation of inventory requires proactive, ongoing management. This includes establishing, moving, rotating, and replenishing inventory levels as needed.
- Decentralized strategic stockpile placements: Store inventory in multiple locations, enabling swift and efficient distribution during an emergency.
- Global cooperation: Collaborative rules and agreements among countries, particularly during international crises, may help ensure that all nations receive critical supplies when they need them most.
These actions, among others, can help us learn from the pandemic and build a more resilient, prepared society for the future—one that prioritizes the health and safety of its people, no matter the circumstances.
Footnotes:[1] Strategic National Stockpile, Wikipedia, accessed April 14, 2020, https://en.wikipedia.org/wiki/Strategic_National_Stockpile#:~:text=The%20Strategic%20National%20Stockpile%20%28SNS,treatment%20medicines%20given%20in%.20large.[3] Leiserowitz, Daniel C., et al. "Supply Chains and the National Security Implications of a More Competitive Europe." Center for Strategic and International Studies, March 2017, p. 7, https://csis-website-prod.s3.amazonaws.com/s3fs-public/publication/170328_supply_chain_national_security.pdf.
- Understanding the trajectory of global trade and demand, particularly in the health-and-wellness sector, requires a thorough comprehension of logistics, particularly in supply chain management and inventory management.
- In light of the ongoing pandemic, science has shown that effective demand planning can help alleviate the pressure on supply chains by ensuring accurate inventory levels for critical medical supplies like N95 masks.
- To foster global resilience and preparedness in the face of future health crises, it's imperative to adopt a multifaceted approach that includes robust inventory management, strategic sourcing, and global cooperation in areas like global trade and supply chain management.
