Market volatility has always generated a level of uncertainty that supply chain organizations have had to contend with. But over the past decade, the list of market volatility drivers has grown. They now encompass a much wider set of events including cybersecurity; disease; environmental, social, and corporate governance (ESG); and geopolitical conflicts like the Russia-Ukraine war. Crisis mode has become the new normal, driving unprecedented variability in all aspects of the supply chain.
The KPMG Supply Chain Stability Index, in association with ASCM
KPMG has developed an index to measure the stability of supply chains. Using market data and advanced analytics, the Stability Index gauges how well organizations are dealing with the ups and downs of volatility and informs operations to make better decisions for what lies ahead.
Behind the index is a set of machine learning algorithms. Fueled by 14 years of data comprised of nearly 30 key variables and performance indicators, the Stability Index unlocks insights into new behaviors that companies are taking to adjust to the new norm of volatility.
According to the index, logistics has been the predominant cause of stress in the supply chain, accounting for 71 percent of variability in operations performance. This is followed by an underutilized supply chain workforce (19 percent) and a constrained supply base (10 percent).
Explore the index to gain further insight into the stability of supply chains across the United States. The dashboard below provides an interactive interface that visualizes trends over time, drills down into granular levels of detail, and reveals root causes behind variability. There are three pages to help navigate:
- Supply Chain Stability Index provides overall index values over time.
- Contributing Factors decomposes the index into three sub-indices or factors - Logistics, Capacity, and Supply.
- Supporting Variables provides access to the variables that drive each factor.
Hovering over a point on any charted line displays a window that provides further insight into what drives variability at a particular point in time.
Review the 2022 Supply Chain Stability Index Report to learn how to turn adversity into opportunity.
The Association for Supply Chain Management (ASCM) is the global pacesetter of organizational transformation, talent development and supply chain innovation. As the largest association for supply chain, ASCM members and worldwide alliances fuel innovation and inspire accountability for resilient, dynamic and sustainable operations. ASCM is built on a foundation of world-class APICS education, certification and career resources, which encompass award-winning workforce development, relevant content, groundbreaking industry standards and a diverse community of professionals who are driven to create a better world through supply chain.
To learn more, visit ascm.org