What is the Purchasing Managers Index or PMI?

September 6th, 2022

Do you use The Purchasing Managers Index in your sourcing strategies? Do you know what it is?

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc

Do you use The Purchasing Managers Index in your sourcing strategies? Do you know what it is?

This useful index is one that many purchasing managers and other procurement knowledge workers use to keep up with the ever-increasing speed of change in our area of expertise.

The Purchasing Managers’ Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The purpose of the PMI is to provide information about current and future business conditions to company decision makers, analysts, and investors.

At SafeSourcing we often use this data in the development of our client-driven eRFI, eRFP and eRFQ or Reverse Auction strategies.

SafeSourcing is a Procure to Pay SaaS based provider of a number of e-Procurement solutions and associated white glove services that are part of our SaaS offered SafeSourceIt™ eSourcing suite . These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers. To learn more, please contact a SafeSourcing customer services associate.

Sources:

Investopedia: Purchasing Managers’ Index (PMI) Defined and How It Works (investopedia.com)

Wikipedia: Software as a service Wikipedia

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