BLUF

During times of national crisis, supply chains simply can't cope, but upfront stockpiling of essential commodities can alleviate the inevitable surge and soften some of the crisis's consequences.

Summary

KEY POINTS:
  1. 'Just in time' supply chains fall short of meeting national needs during unexpected surges in demand.
  2. Usually, the Government intervenes to oversee the provision of the needed commodity, but this process can be slow and lead to unnecessary stockpiling.
  3. The war in Ukraine has shown how demands as simple as artillery ammunition can strain the global defence industry.
  4. A solution is "TilNeeded Options," which guarantees the delivery of a commodity when a surge occurs, in exchange for a premium payment.
READ: How to prepare for a surge in the supply of essential commodities in the event of a national crisis

References