Home | Supply Volatility Index
Supply Volatility Index
The Supply Volatility Index, leveraging SourceDay’s proprietary dataset from over 101,000 suppliers and 100 million annual PO updates, analyzes key supply chain disruption signals, including PO changes, price fluctuations, and delivery performance. Using Principal Component Analysis (PCA), the index identifies on-time delivery (OTD), on-time in-full (OTIF), PO adjustments, and supplier engagement as the primary drivers of manufacturing and distribution volatility.
This report is designed to help manufacturers and distributors spot early signs of instability and make more informed operational decisions.
Q1 2025 Key Findings
-
Supply volatility surged 22% year-over-year in Q1 2025, reaching its highest level since 2022 and signaling major supply chain disruption.
-
The spike is driven by demand uncertainty, with a 6% rise in PO changes and a 36% increase in price risk linked to potential tariffs.
-
Despite stable delivery and pricing early in Q1, organizations began stockpiling and shifting suppliers in anticipation of new trade restrictions.
-
These patterns mirror early COVID-19 pandemic indicators, suggesting volatility may continue to rise throughout 2025 amid regulatory and sourcing uncertainty.
