A “blood pressure monitor” for domestic logistics

Since the corona pandemic, geopolitical conflicts and trade wars, supply bottlenecks have become omnipresent and the vulnerability of supply chains has become obvious. In order to predict, analyze and subsequently learn from supply bottlenecks, the Institute for Supply Chain Research (ASCII) today, Tuesday, during the opening of the Austrian Logistics Day in Linz presented a new index (Austrian Supply Chain Pressure Index, ASCPI) to better prepare companies for future crises.

“With the ASCPI, we want to show how much pressure and stress supply chains are under and whether there is a risk of interruptions,” said Klaus Friesenbichler, Wifo economist and deputy ASCII director. The index is based on delivery indicators reported by up to 2,000 Austrian companies (order backlogs, material shortages…) and international indicators, such as shipping and port conditions. The result is a traffic light system: if the chart is in the green area, no problems are to be expected; if it is in the yellow area, disruptions are possible. Problems actually occur in the red area. An increase in supply chain pressure leads to a sharp increase in producer prices, which then impacts on consumer prices, said Friesenbichler. At the same time, industrial production and gross domestic product are dampened.

“This data is intended to provide added value and decision-makers in politics and business with decision-making support,” said ASCII President Franz Staberhofer. “And we will discuss things with companies and try to find solutions quickly.” Companies can take short-term measures, such as adjusting inventory levels or using alternative means of transport. During longer periods of stress, resilience must be increased, for example by shortening supply chains, switching to alternative suppliers or setting up additional transport routes. With this index, the company is a pioneer across Europe, said Friesenbichler. The ASCPI is updated monthly on the ASCII website (www.ascii.ac.at).

Two out of three euros in exports

State Minister for Economic Affairs Markus Achleitner described logistics as the “bloodstream of the economy”: “We have experienced what it means when the supply chains do not work.” Now they have succeeded in developing a blood pressure monitor for this bloodstream. The aim is to increase the resilience and resistance of the domestic economy, which earns two out of every three euros from exports.

The ASCIIfounded by the Federal Ministry of Labour and Economics (75 percent) together with the Province of Upper Austria (25 percent), has ten million euros available for research activities over five years.

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