Wesfarmers Boss ‘Businesses Need To Think About Diversifying Supply Chains’
Rob Scott – the CEO of Wesfarmers, which includes Bunnings, Catch, Kmart and Officeworks – has stated that Australian businesses should consider diversifying their supply chains in order to mitigate vulnerabilities.
“There are a number of issues around the diversity within our supply chains, the single point reliances we may have in some jurisdictions,” Scott told The Australian.
“We have seen examples where because some other countries haven’t handled the risks as well, that has created some pretty significant disruptions to services and supply, so I don’t think there is any straightforward answer, other than from a risk management point of view, companies do need to look… at where the interdependencies are and where the vulnerabilities are in supply chains.”
Wesfarmers has not yet revealed how exactly it will be expanding its supply chains, but the group did state it would, in cases of hardship, support suppliers through accelerated payment.
In its 2020 Macquarie Conference presentation, Wesfarmers also stated that fast-tracking supply for high-demand categories would be a key focus moving forward.