Councils asked to show flexibility for warehouses to clear supply chain backlog

23 July 2024

The NSW Government has today issued a circular to councils asking them to take into consideration the need for supply chain recovery over the next two weeks when responding to any complaints about operations at warehouses and distribution centres, wholesale and retail centres.

The unprecedented software failure first detected on Friday ground deliveries of fresh produce and other grocery items at many warehouses and distribution centres across NSW to a halt.

The NSW Government is asking councils to be sympathetic to the exceptional circumstances and support supermarkets and other essential retailers to help keep their shelves stocked following disruptions to supply chains caused by last week’s CrowdStrike global IT outage.

Supply chains depend on IT systems to manage their inventory, coordinate the movement of goods and share information. When those systems failed, it left items unable to enter or leave warehouses and distribution centres.

While many warehouses and distribution centres have resumed normal operations, there is still a significant backlog of fresh produce and other essential goods requiring processing before they can reach supermarket shelves and other retailers.

The Environmental Planning and Assessment Act 1979 and its regulation authorises councils to take compliance action in response to breaches of conditions of a development consent relating to operating hours, noise limits and vehicle movement caps.

The planning circular however reminded councils they also have discretion in choosing whether to exercise their enforcement powers. This includes considering the temporary nature of any breach, the low level of harm caused and the broader public interest in restoring supply chains.

To read the circular, visit here

Minister for Planning and Public Spaces Paul Scully said:

“It’s imperative that our state’s supply chain systems be provided with flexibility in order to recover and return to normal service after this global IT outage. This will enable customers to receive delivery of these essential goods while also avoiding food wastage.

“I’m asking councils to use their discretion in choosing whether to issue penalty infringement notices for warehouse and distribution centres as well as wholesale and retail centres operating beyond their normal hours as well as being restocked.

“This temporary approach for the next two weeks will allow our supermarket shelves to continue to be stocked with essential food and household items.”