There is still work to do to achieve supply chain stability

The Association for Supply Chain Management (ASCM) and KPMG released the latest data from its Supply Chain Stability Index, designed to help supply chain professionals understand the stability of U.S. operations and act as a barometer for the global supply chain community. The results show 2023 as a year of tremendous improvement and increased supply chain stability overall, with several variables still driving continued fragility.

The report suggests a return to pre-pandemic normalcy is unlikely in 2024 due to factors such as cross-border patrol closures between U.S. and Mexico trade corridors, and rising conflicts leading to commercial ship attacks in the Red Sea. There are still reasons for optimism, however, such as greater nearshoring efforts in Mexico and Canada, which helps reduce reliance on other regions.

“While supply chain challenges do persist, the overall return to increased levels of stability is a testament to the incredible efforts of countless supply chain professionals,” said ASCM CEO Abe Eshkenazi. “The Index continues to confirm that people make all the difference. We must continue cultivating supply chain talent to mitigate disruptions, build resiliency, and drive growth.”

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These findings are consistent with data from the U.S. Chamber of Commerce, which showed an average of approximately 0.71 workers available for each open job position during the first seven months of 2023. This presents a particularly challenging workforce environment for our labor-intensive and evolving industry.

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Brian Higgins, managing director at KPMG, added, “Geopolitical factors have posed risks to the logistics sector, leading to disruptions in distribution, transportation, and capacity. It is important to continuously monitor and adapt to the complex geopolitical landscape, as well as pay close attention to emerging technologies, such as generative AI, that are critical in the future success of supply chain management.”

To see more details from the index and to read the full article, visit our sister site, Supply Chain 247.

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