Despite the instability that first reared its head during COVID-19 and continued with the disruptions caused by the Russia-Ukraine conflict, the greatest pressures on the supply chain are not the headline grabbing news events, but rather more common problems: labor and freight costs.
Granted, freight costs encompass a myriad of inputs, including the aforementioned events. But when combined with labor challenges, the two categories contribute to 92% of the supply chain stress being felt today.
That is the finding of the second Supply Chain Stability Index, a joint venture between the Association for Supply Chain Management (ASCM) and KPMG, the U.S. firm of the KPMG global organization of independent professional services firm.
The recently released index tracks supply chain stability through the end of Q4 2022.
