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Supply chain management
 
Markit Economics PMI™ sector reports track output, demand, prices, employment, etc. allowing panel members to track changing trends in key supplier industries markets of relevance to their business.

By being aware of how well (or badly) these sectors are performing, and what price and cost trends are in these sectors, users can gain valuable information for managing supplier relationships, negotiating contracts and anticipating problems.

Some examples of how PMI data can be applied to monitor supplier trends:

•   Are orders falling in your supplier’s sector? If so, they might be keen to offer you discounts on new work, so keep an eye on the New Orders Indexes for your key supplier markets.

•   Are stock levels rising at your suppliers? If so, suppliers may be prepared to negotiate on price to remove excess stocks. Any move of the Stocks of Finished Goods Indexes above 50 at your supplier markets will suggest a build up of inventory.

•   Are costs rising sharply at your suppliers? If so, expect them to approach you to renegotiate their selling prices to you. The Input Price Indexes for your supplier markets will keep you informed of their cost trends.

•   Are your suppliers seeing delivery delays? If so, expect some possible supply problems yourself. The Suppliers’ Delivery Times Index for you supplier markets will alert you to problems down the supply chain.

Just one of the many EU sector PMI reports is shown below.


 
 
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