On-time index resumes downtrend
By Staff -- Purchasing, 3/26/1998
On-time index resumes downtrend. After falling into bottleneck territory in fall 1997, our diffusion index, tracking overall supplier delivery performance, staged a small comeback, rising as high as 48% in January. Since then, however, the index has reverted to its fourth-quarter level, resuming a longer-term downtrend. Autumn delivery difficulties were attributed largely to transportation problems, but the long-term declining trend in this index is more likely a function of increasingly tight labor markets. Word from buyers is that lower hiring standards are causing more nonconformance problems which, in turn, are damaging delivery performance.
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