Apr 9, 2024 - Economy

Charted: Supply chains de-stress

KPMG Supply Chain Stability Index
Data: KPMG and the Association for Supply Chain Management; Chart: Axios Visuals

Just-in-time manufacturing is back — and not a moment too soon.

  • The pandemic wrecked supply chains, undermining the once-seemingly foolproof strategy of scheduling production as soon as components arrived on site.

The big picture: Consultancy KPMG's monthly Supply Chain Stability Index — made with the Association for Supply Chain Management — shows a decline in the initial months of 2024 to the lowest point since February 2021.

  • A lower measurement means less stress in the supply chain.

Yes, but: With zero representing an average level of stability for the U.S. over the last 15 years, the index is still displaying an elevated level of stress at 1.04 in February.

What they're saying: "While a complete return to pre-pandemic normalcy in 2024 is unlikely, there are positive developments such as the comeback of just-in-time inventory strategies," KPMG supply chain AI leader Jim Lee said in a statement.

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This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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