Brushware Magazine: Inflation Busters: Protecting Profits as Costs Rise
"Proactively managing cash flow is critical right now," says Lisa Anderson, president of LMA Consulting Group, Claremont, Calif. This can be done by running periodic forecasts.
"Proactively managing cash flow is critical right now," says Lisa Anderson, president of LMA Consulting Group, Claremont, Calif. This can be done by running periodic forecasts.
Lisa Anderson, manufacturing and supply chain expert and president of LMA Consulting Group discusses practical insights on how to unlock operating capital and fuel growth.
As executives continue to navigate these volatile economic conditions, the focus on inventory management increases. It is especially tough to determine what to do if you don't know if sales opportunities will dramatically increase as the competition falters and consumers drive demand or if sales will tank as recession fears increase and business optimism falters.
Manufacturers are experiencing continued inflationary pressures threatening customer service and profit margins with record-breaking price increases and lack of material availability. To add fuel to the fire, they are also starting to worry about preparing for a potential recession.
After months of shortages and supply chain disruptions, many retailers suddenly found themselves with excess inventory. Lisa Anderson discusses how shifting demand and the bullwhip effect contributed to the dramatic swing from empty shelves to overflowing warehouses.
Since the pandemic, it has been a constant battle to ensure material availability, let alone to proactively manage cost and service. Even the most proactive and successful clients have experienced brief shortages of key materials and extended lead-times. The rest have been plagued with these issues.
Because we live in a global, supply chain disrupted world amidst record-breaking prices for food, commodities and oil (and all products dependent on these industries), not only are businesses looking to navigate inflationary pressures, but also deflationary pressures. Inflation can lead to deflation as consumers panic and demand softens.
A supply chain is only as strong as its weakest link. Discover how proactive planning, SIOP, supply chain visibility, inventory management, and technology can help strengthen resilience, minimize disruptions, and improve customer service, productivity, and profitability.
Lisa Anderson, Manufacturing and Supply Chain Expert and President of LMA Consulting Group, talks about the coming months and keeping an eye on cash balance."Proactively managing cashflow is critical right now".
Inflation has taken root. Businesses everywhere are dealing with annualized cost increases of nearly seven percent--the fastest pace in 40 years and significantly higher than the 1.8 percent average of the past decade. The resulting upticks in operating costs can cause serious damage to the bottom line.