Source · Select Committees · Scottish Affairs Committee

Recommendation 77

77 Accepted

The Defence Secretary acknowledged that the MOD’s understanding of supply chains had been “one of...

Conclusion
The Defence Secretary acknowledged that the MOD’s understanding of supply chains had been “one of our vulnerabilities” in the past, but said that since then “there has been a real drive across Government, and certainly in our department, to map and understand your supply chain right the way through the system.”126
Government Response Summary
The MOD operates a series of initiatives to improve understanding of supply chains and address vulnerabilities, including a Supply Chain Resilience Programme and the introduction of a new Defence Condition (DEFCON) in contracts to map supply chains.
Government Response Accepted
HM Government Accepted
Our critical supply chains, including those used within shipbuilding, depend on a diverse range of global trading partners to ensure a continuing flow of essential items and to avoid shortages. As the Committee has noted, the MOD operates a series of initiatives to improve our understanding of our supply chains, as well as identify and address any vulnerabilities. These include an extensive MOD-wide Supply Chain Resilience Programme, which aims to prioritise the mapping of our most critical supply chains, such as those used within the Type 26 Frigate programme, to ensure any impact on the delivery of Defence outputs is minimised. The MOD have also sought to improve the quality of the mapping data received from our suppliers by introducing a new Defence Condition (DEFCON) in all new contracts over a certain value threshold. This requires contractors provide the Department with their supply chain maps down to Tier 4 of the supply chain. The Department are also working with our industry partners to understand, map and, where appropriate mitigate common critical components and materials. This activity supports the assessment of risks and potential strategic mitigations in the end-to-end supply chain for these defence technologies.