WHAT IS SUPPLY CHAIN FUNDING INDEX
The Supply Chain Funding Index (SCFi) was created by URICA, the global supply chain funding specialist, alongside YouGov and economist, Dr John Ashcroft, to measure the existing and forecasted condition of the UK’s supply chains, taking into account its strength, payment and credit terms and forecasted growth.
To date, over 2000 businesses were surveyed over a span of 6 months. The first survey was carried out in September 2016 and the second one – in February 2017.
The SCFi was calculated by inputting the answers of the numerical-scale questions into an algorithm. All numerical questions were asked on a scale of 0 – 10, where 0 is the best score and 10 the worst score a respondent could give. YouGov carried out some statistical correlation analysis to better understand the links between the three factors comprising the index, in order to ensure that the calculation was reflective of the weight of the factors. 1258 businesses took part in the survey in Spring 2017.
The result is a figure between 0 and 10 which indicates the overall condition of the supply chain. This score is then inverted to provide the final Index measure so a higher score means a stronger and less pressured supply chain.
The Latest from Your Industry in the Supply Chain Funding index Report 2017
The Supply Chain Funding Index has become notably weaker across all sectors and supplier types in the past 6 months, falling from 6.6 to 6.2 out of 10.
Although more than half of businesses are expecting an increase in their turnover in the next 12 months, a further deterioration in supply chains reported by a third of businesses surveyed overshadows this positive sentiment, indicating real concern for growth and productivity of UK businesses.