Effective supply chain planning hinges on accurate measurement and understanding of the stresses that exist within a network. To help meet this need, KPMG, in association with ASCM, has launched the global Supply Chain Stability Index. This tool uses data analytics and machine learning to look at past trends and predict future shifts in supply chain. Its application enables supply chain organizations to forecast the impact of these trends with more confidence.
Changes in supply chain are a major factor in procurement decisions and a driver of price fluctuations. To get ahead of change, four factors are considered in the Supply Chain Stability Index:
By taking into account these factors, the index illuminates stresses and where they originate, helping users predict supply chain fragility up to three months ahead — and eventually further into the future, as the data accumulates. The ultimate goal of this index is to create more resilient supply chains despite ongoing volatility.
To learn more about the KPMG Supply Chain Advisory Practice, please click here.
KPMG and ASCM jointly examined the impacts of the unprecedented volatility roiling supply chains. A set of machine learning algorithms have been built to gain insights into the sources of stress and how companies are responding to the new norm in supply chains.
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KPMG and ASCM have joined forces to create The KPMG Supply Chain Stability Index. The partners are using the model to assess the stability of U.S. supply chains on a monthly basis and serve as a helpful barometer for the greater supply chain community.
KPMG is a consulting organization that uses supply chain strategy, analytics and thought leadership to help clients mitigate risk and maximize opportunities. ASCM is the largest nonprofit association for supply chain and the global leader in supply chain organizational transformation, innovation and leadership. As an unbiased partner on all aspects of supply chain excellence, ASCM shares KPMG’s desire to drive positive, sustainable change for supply chain organizations across the globe.