Defense suppliers face critical test: can nations secure supply chains?

<p>The concept of “Security of Supply” has gained increasing attention in the wake of events, such as the Fukushima accident in 2011, the COVID-19 pandemic, the Suez Canal blockage in 2021, the invasion of Ukraine in 2022, and heightened rivalry between the US and China. These incidents have laid bare the vulnerabilities of global supply chains and the lack of access to critical resources, such as rare earth elements. Consequently, many nations, authorities, and companies have initiated efforts to secure access to resources essential for societal preparedness, national defense, and the production of vital goods and services. Achieving greater independence in critical sectors, reducing reliance on strategic materials and components, and enhancing the resilience of supply chains are crucial goals. The definition of critical resources and supplies varies depending on the perspective of the examining organization, whether it be a nation, authority, or company. This chapter aims to clarify the concept of “security of supply” and demonstrate various factors that influence the possibility of achieving a reasonable degree of security of supply. The approach posits that security of supply is attained through supply chains comprising various stakeholders, including authorities, suppliers, transporters, warehouses, receivers, and information and payment solutions. The endurance of security of supply is contingent on the robustness of the supply chain. The chapter includes a literature survey of the “security of supply” concept and empirical data from four companies and two authorities in Sweden involved in the defense sector. Beyond providing a deeper understanding of the concept, this chapter illustrates the interconnectedness of various factors influencing the development and sustainability of security of supply</p>