On Bauer Business Focus — A conversation on supply chain management and the Houston economy with Houston Public Media News 88.7 Business Reporter Andrew Schneider.
Supply chain managers have a unique position in business – they understand the broad spectrum of a market, from getting materials for a product to pricing it for the customer.
Ross Harvison, business survey chairman of the Institute for Supply Management, stopped by Bauer Business Focus to discuss the role supply chain managers have as a predictor for the Houston economy.
To tap into this knowledge, the Institute for Supply Management conducts a monthly survey, the Houston Purchasing Managers Index, of supply chain managers to see where the Houston economy is headed.
“The supply chain folks work across a broad cross section of companies,” Harvison said. “We engage very heavily with the business side, the people that are selling the products, and we engage very heavily with the manufacturing organizations, the people that are producing the product.”
The results from the survey tend to take three to four months to take effect. The Dallas Federal Reserve’s Houston area business cycle index reflects the index’s findings and will show the local business cycle as going one way or the other, Harvison said.
“Our intent from the very beginning was to ask our questions in a way where we understand what is happening right now, but also understand certain things that are impacting manufacturers today that will show up in product rates downstream. We typically see a three to four month delay between the issuance of our index and when the Dallas Federal Reserve presents the Houston area business cycle index as going one way or the other.”
Click here to hear the full interview.