One important indicator of supply chain conditions is the Manufacturing Supplier Deliveries Index produced by the Institute for Supply Management. This index is calculated using the responses from a monthly survey sent out to manufacturers across the United States. The survey’s question about supplier deliveries asks whether they are arriving faster, slower, or unchanged compared to the prior month.
The results from the questionnaire let firms know if the specific change they are experiencing in their own supply chain performance is an isolated event or part of a broader trend. Readings below 50 suggest faster or quickening delivery performance while readings above 50 indicate lengthening delivery times. Sustained readings that are well above or below 50 indicate that significant and enduring events are broadly affecting supply chains.
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