On June 8, 2021, President Biden's administration outlined broad measures and recommendations to address the widespread supply chain issues, intending to revitalize the U.S. manufacturing industry and reduce the reliance on other countries for crucial goods.
These measures come following an Executive Order issued by President Biden in February, which called for a 100-day review of the U.S supply chain to identify near-steps that can be taken to address its vulnerabilities.
The Biden administration review covers four areas: large capacity batteries used in electric cars, pharmaceutical and active pharmaceutical ingredients, semiconductors used in products such as phones and cars, and rare-earth minerals that are vital to the defense and technology industries.
While the recent deterioration in the supply chain has been amplified by the public health and economic crisis, decades of poor public policy choices and underinvestment in the supply chain are the major causes of its fragility across various industries.
Below we will take an in-depth look at how President Biden's plan hopes to improve the supply chain and how it might affect your eCommerce business:
The first measure to improve the supply chain is the enhancement of domestic competitiveness and supply chain resilience. Here are some of the measures the plan takes in addressing the vulnerability of the supply chain of the four critical products:
The Biden administration will take a series of actions by the Federal government to support supply chain resilience, production, innovation, workforce development, and enhance the sustainability of the supply chain.
It will accomplish this using the following strategies:
The increase in vaccinations, the economic relief efforts, and the removal of the movement restrictions have stimulated a return in economic activity. However, most businesses have not regained their pre-pandemic stability, given the significant disruptions of the supply chain because of the pandemic.
To address these immediate challenges with the supply chain, the Biden administration will establish a whole-of-government effort to address the transitory supply chain issues. A task force will be formed to address the short-term supply chain issues in a bid to restore the economy. This task force will convene stakeholders from various industries to diagnose supply chain problems and try to find solutions to these problems.
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Here are some of the long-term recommendations put forth by the 100-day review to strengthen the U.S supply chain in the long term:
The Biden-Harris administration's plan to improve the supply chain is poised to stabilize the U.S. supply chain and rejuvenate the U.S manufacturing industry. In so doing, it will help grow the economy. So how exactly will eCommerce sellers benefit from this?
For starters, the stabilization will increase the production of domestic products such that there will be more products to sell both locally and abroad. Also, the removal of unfair foreign trade policies will create a conducive international trading environment and enhance the eCommerce seller's ability to collaborate with various stakeholders in international trade.
While the plans to improve the supply chain go a long way in enhancing the eCommerce business, you need a reliable 3PL fulfillment company to actualize your domestic and international logistics needs. Your 3PL partner should have a network of spacious shipping and fulfillment warehouses, be adept at supply chain management, and have the ability to take care of different freight operations, domestically and internationally.
Rakuten Super Logistics is the ideal partner to fulfill your logistics needs. We are dedicated to building a global order fulfillment network that provides online consumers and retailers with fast, accurate, and efficient distribution for borderless eCommerce.
Learn how Rakuten Super Logistics can handle your complete domestic and international freight operations by outsourcing the fulfillment process, all while lowering shipping costs and delivering fast and accurate fulfillment. Request a free shipping analysis.
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