Global IT outage

23 July 2024

Background

As you may be aware, a global IT outage occurred on Friday due to a software update from the cybersecurity firm Crowdstrike. The AFGC has attended several National Coordination Mechanism (NCM) meetings with representatives from various government bodies, industry participants and other major stakeholders. 

The NCM stood up a specific food and grocery group to understand potential concerns and solutions to ensure the delivery of food and grocery products. 

Retail Impact

Woolworths confirmed the outage affected picking technologies in key distribution centres for approximately 48 hours, causing a backlog of fresh and ambient goods to supermarkets in NSW, QLD and SA. Woolworths estimates a recovery period of 3-7 days and is seeking temporary extensions to curfews to allow late-night deliveries, ensuring customers don’t face empty shelves. This proposal has the support of other retailers and freight companies.

ALDI and Metcash confirmed they haven’t experienced any direct impacts to their supply chains and distribution networks. But they are cautious about potential indirect impacts from affected suppliers and transport providers. 

Freight Impact

Freight companies like Linfox are supporting a 72-hour relaxation of curfews to help clear the backlog of loads and recover. They estimate a return to normal operations within 3-4 days.

Government Update 

Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) and state regulators agreed the most appropriate action is to request Local Government Ministers issue a gazette notice to councils requesting they not enforce the planning controls and curfews in area.

Member Action

The AFGC will continue to liaise with government bodies and retailers on this matter. If your company has been or continues to be affected, please contact Samantha Blake (samantha.blake@afgc.org.au) or Samuel Garcia (samuel.garcia@afgc.org.au).

TANYA BARDEN OAM
CHIEF EXECUTIVE OFFICER, AFGC