Supply Chain Stability Index
The rising frequency and intensity of crises calls for new insights
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 rising tariffs; cybersecurity; disease; environmental, social, and corporate governance (ESG); and geopolitical conflicts. 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, along with the Association for Supply Chain Management (ASCM), has developed an index to measure the current and future stability of supply chains. Using market data and advanced analytics, the KPMG Supply Chain Stability Index serves as a critical barometer for determining how well organizations are responding to evolving risks to the supply chain, and it offers intelligence to shape strategy for navigating a path forward.
Behind the index is a set of machine learning algorithms. Fueled by 15 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, the current economic and geopolitical climate represent the main drivers for creating persistent volatility in the supply chain. Namely, U.S. tariff and trade policy are triggering market disruptions and increasing input costs for manufacturers, as well as adding layers of uncertainty, which makes it difficult to forecast long-term outcomes. Escalating conflicts, trade tensions, and the rise of cyberattacks are also intensifying geopolitical risks abroad.
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 - Freight and Labor, 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.
About ASCM
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
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How KPMG Supply Chain Services can help
KPMG offers a technology-enabled planning transformation journey supported by a proven six-layer operating model that ensures accurate segmentation analysis and includes a demand plan and a data assessment. We offer an AI portfolio, a set of algorithms for supply chains, from augmenting your workforce and optimizing costs to making inventory management more efficient and assisting regulatory compliance. Let KPMG guide, accelerate, and de-risk your supply chain with purpose-built assets and accelerators designed exclusively for supply chain operations.
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