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Global Supply Chains at Full Throttle: GEP Index May 2024

Writer's picture: Jeremy Conradie.Jeremy Conradie.

Updated: Jul 2, 2024


The May edition of the GEP Global Supply Chain Volatility Index shows global supply chains are running close to their maximum capacity


This continues the trend we spoke about here, about how the index indicated in February that the COVID effect was finally fading.


The latest GEP Global Supply Chain Volatility Index shows global supply chains are running close to their maximum capacity, suggesting a stable forecast.


According to the latest data published in May, global supply chains are experiencing an upturn in activity. After grappling with supply shocks, inflation and uncertainty for four years, they're now operating at near-maximum capacity, suggesting a stable outlook.



GEP Global Supply Chain Volatility Index for April


Key insights from GEP index

  • Asia on the move: Asian factories are ramping up input purchases to meet escalating orders, coinciding with diplomatic efforts to dismantle trade barriers in Europe.

  • Challenges in North America: Manufacturers are facing hurdles in fulfilling orders due to staff shortages and material scarcities.

  • Transportation costs: Global transportation costs have seen a slight uptick following recent spikes in oil prices.


In April, the GEP Global Supply Chain Volatility Index rose to -0.18 from -0.32 in March, indicating global supply chains are nearing full capacity. 


Regional variations in the GEP Global Supply Chain Volatility Index


NORTH AMERICA: The index remained largely unchanged at -0.30, indicating spare capacity, although input demand trends showed improvement in April, alongside increased backlog accumulation.


EUROPE: The index declined to -0.55 from -0.62, suggesting a continued easing of the continent's industrial downturn.


U.K.: The index decreased to -0.47 from -0.17, reflecting sharp destocking among UK manufacturers instead of ordering from suppliers.


Source: Supplychaindigital

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