North American Suppliers Struggling to Meet Demand – GEP
The GEP Global Supply Chain Volatility Index, based on a survey of 27,000 businesses, provides insight into ongoing conditions like shortages and transportation costs. In April 2024, transportation costs decreased due to falling container rates, while demand at Asian factories increased. Despite some shortages and capacity constraints, global manufacturers are showing strong pipelines. The index fell in March due to spare capacity and decreased stockpiling.
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FAQ | North American Suppliers Struggling to Meet Demand
Frequently Asked Questions (FAQ)
1. What is the current situation with North American suppliers and demand?
North American suppliers are currently struggling to meet demand due to a lack of staff, which has been highlighted in the Global Supply Chain Volatility Index reported by GEP.
2. What is the Global Supply Chain Volatility Index?
The GEP Global Supply Chain Volatility Index is produced by GEP and S&P Global, serving as a leading indicator that tracks demand and supply conditions in the global supply chain.
3. How is the demand at Asian factories affecting the global supply chain?
Demand at Asian factories has risen at the strongest rate in over 2 years, improving the near-term growth outlook for manufacturing worldwide.
4. What challenges are North American suppliers facing aside from staffing issues?
While the search results specifically mention staffing issues, North American suppliers may also face challenges such as increased operation costs and difficulties due to global economic conditions, as cited by GEP in its assessments.
5. How are increased oil prices affecting the supply chain?
Increased oil prices are pushing up transportation costs, making them the highest since February, which can impact the overall costs and efficiency of the supply chain.
6. What about the supply capacity at global suppliers?
The GEP Global Supply Chain Volatility Index from September 13, 2023, reported weak global demand and spare capacity at global suppliers, indicating an excess of global supply.
7. Have costs of operations for companies changed recently?
Yes, costs of operations have increased as companies have had to find new suppliers to plug gaps and spent more on technology to increase supplier visibility.
8. What are some recommended steps to improve supplier relationships?
While the specific steps are not detailed in the search results, common strategies include improving communication, aligning business objectives, engaging in long-term partnerships, and utilizing technology for better collaboration and visibility.
For more detailed insights and information on Global Supply Chain Volatility Index findings and recommendations for managing supply chain risks, you can refer to the original articles on Supply Chain Digital and other related sources from the provided links.