The Global Supply Chain Pressure Index (GSCPI) was develop by the Federal Reserve Bank of New York to measure global supply chain pressures that could be used to gauge the importance of supply constraints with respect to economic outcomes. Fed research indicates, for example, that changes in the GSCPI are associated with goods and producer price inflation in the United States and the euro area.
With a thumb on the pulse of contract manufacturing industry, based on several discussions with electronics supply chain decision makers, plus feedback from Venture Outsource clients, the focus has been shifting, since 2020, to better cost management of manufacturing operating inputs with more emphasis on decision-making tied to lowering, or tightening, supply chain vendor and supplier costs and preserving cash through implementing more robust outsourcing program quote pricing contract negotiations and capex spend management practices.
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The GSCPI integrates a number of commonly used metrics with the aim of providing a comprehensive summary of potential supply chain disruptions.
Several supply chain-related components from Purchasing Managers’ Index (PMI) surveys, focusing on manufacturing firms across seven interconnected economies: China, the euro area, Japan, South Korea, Taiwan, the United Kingdom, and the United States are included.
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