2023 Deemed Year of Improvement for Supply Chain, Says KPMG Supply Chain Stability Index

April 18, 2024
Although 2023 saw improvements in supply chain, according to the Association for Supply Chain Management and KPMH LLP, there are still hurdles to overcome.

On April 9, the Association for Supply Chain Management (ASCM) and KPMG LLP released their latest findings from the KPMG Supply Chain Stability Index. The index aims to help supply chain professionals understand the stability of U.S. operations and serve as an indicator for the global supply chain community.

The index found that 2023 was a year of improvement and increased supply chain stability. Yet, there are still several variables driving continued weakness.

The index says that “The KPMG Supply Chain Stability Index, in association with ASCM, suggests a complete return to prepandemic normalcy remains unlikely in 2024. Factors that have contributed to recent instability include cross-border patrol closures between U.S. and Mexico trade corridors and rising conflicts leading to commercial ship attacks in the Red Sea. However, there are also positive signs including greater nearshoring efforts in Mexico and Canada, reducing reliance on other regions. Additionally, thanks to traditional response tactics combined with the strength built up during the pandemic, the supply chain impact of the recent Key Bridge collapse in Baltimore won’t be as intense as initially thought.”

The index adds that adopting best practices, leveraging digital technologies, and developing workforce skills will assist companies achieve their goals. The report also says the areas of inventory optimization, automation and the future of labor, ongoing and logistics challenges merit special attention from supply chain leaders.

ASCM executive vice president of Strategy and Alliances Douglas Kent was quoted in the release saying that, "As we navigate the complexities of modern supply chains, having actionable insights is paramount and this Index helps shed light on risks that remain as well as areas of progression. For example, we’re now seeing just-in-time inventory strategies making a comeback and the competitive talent market beginning to ease, thanks to the effective use of technology. We must continue to leverage data to monitor and adapt to the complex and ever-evolving supply chain landscape.”

About the Author

Janette Wider | Editor-in-Chief

Janette Wider is Editor-in-Chief for Healthcare Purchasing News.