Tava Olsen - Can NZ have a national supply chain strategy?

<p>The Government's push to develop a national supply chain strategy doesn't make much sense because supply chains need to be matched to specific products, says a leading supply chain academic.</p><p>Tava Olsen, Professor of Operations and Supply Chain Management and Director of the Centre for Supply Chain Management at the University of Auckland Business School, spoke to interest.co.nz for the latest episode of our <a href="https://www.interest.co.nz/node/116346" target="_blank"><i><strong>Of Interest Podcast</strong></i></a><i><strong>.</strong></i></p><p>Earlier this year the Ministry of Transport issued<a href="https://www.interest.co.nz/public-policy/115592/government-planning-nzs-first-ever%C2%A0comprehensive-freight-and-supply-chain" target="_blank"><i><strong> the New Zealand freight and supply chain issues paper.</strong></i></a>In the wake of global supply chain disruption caused by the Covid-19 pandemic. Transport Minister Michael Wood said the Government was "taking action to future proof our supply chain, limiting the impact of the next global shock on our businesses across the country."</p><p>Olsen said while the paper does an excellent job of outlining the background and all the issues, she's not convinced a national supply chain strategy is a good idea.</p><p>"I don't think a national supply chain strategy makes much sense. A freight strategy maybe, quite possibly. But in our very first class on supply chain what we teach is that you don't have one supply chain strategy. You have to match your supply chain strategy to the type of product."</p><p>"So Fisher & Paykel Healthcare exporting their high tech, light masks, are going to need a completely different supply chain than Fonterra exporting their low value, heavy milk powder bags. Those are two fundamentally different supply chain types. And if you look at what you're going to emphasize, you're going to emphasize responsiveness for Fisher & Paykel Healthcare, and you're going to emphasize minimising cost for the Fonterra milk powder," Olsen said.