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UK Supply Chain Funding Index Declines

The Supply Chain Funding Index (SCFI) strives to measures the existing and forecasted condition of the UK’s supply chains, considering its strength, payment, and credit terms and forecasted growth. The most recent results point to a slight decline in the past year. 

Over the past six months, the SCFI saw decline and weakness across all sectors and supplier types. It fell from an average of 6.6 to 6.2 out of 10 with one-third of organizations reporting deterioration over the supply chain. “These concerns are felt across all supplier type, who are now saying the supply chain is becoming more stretched/fragile vs. last year,” the report noted. The tech industry is one of only three sectors ni which businesses are less likely to describe the  supply chain as stretched.

Smaller firms (defined as revenues of £250,000 to £9.9 million)  had a steeper decline than their larger counterparts. This sector was also those most at risk of having a supply chain break or event that was either significant or quite disruptive to the businesses. 

On a brighter news, more than half the businesses surveyed expect to increase their turnover in the supply chain over the next 12 months. The report expects that increased value of the pound will have the most positive impact across all companies especially medium (45%) and small (44%) sized cmopanies. 

The index, which was created by URICA, a supply chain funding specialist, in collaboration YouGov and economist, Dr John Ashcroft, surveyed 2,000 businesses over six months starting in September 2016. 

The infographic below outlines more of the results of the most recent index. Let us know in the comments section below how these findings compare to what your company has experienced. 

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