Persistent inflation creates challenges that extend well beyond higher costs, impacting cash flow, inventory, pricing, and supply chain decisions. In this article, Lisa Anderson, President of LMA Consulting Group, discusses how stronger planning, forecasting, and cash flow management help manufacturers protect profitability, maintain customer service, and position themselves to capitalize on growth opportunities despite inflationary pressures.
Persistent inflation affects far more than rising costs—it puts pressure on cash flow, inventory decisions, customer pricing, supplier relationships, and profitability. In this article, Lisa Anderson, President of LMA Consulting Group, discusses why proactively managing cash flow, forecasting future cash balances, and balancing inventory with customer service are essential to protecting profitability during an inflationary environment.
Inflation has taken root. Businesses everywhere are dealing with annualized cost increases of nearly 7%–the fastest pace in 40 years and significantly higher than the 1.8% average of the past decade. The resulting upticks in operating costs can cause serious damage to the bottom line.
Experts don’t see relief any time soon. They point to a number of root causes, one of which is energy.