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.
Lisa Anderson, a supply-chain management expert and the president of LMA Consulting Group, says if you’ve got the cash on hand now,"it’s not a bad idea to start your holiday shopping early this year."
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.
According to the Wall Street Journal, consumer prices are the highest in 40 years. It certainly doesn’t seem to be letting up. In fact, with the Russia-Ukraine war, there will be continued inflationary pressures on products related to oil, gas, commodity, and food at a minimum.
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.
Every client wants to support growth goals while improving service levels (OTIF, on-time-in-full), operational efficiencies and inventory turns. These are timeless objectives for every planner. During the pandemic, the priorities shifted to service levels because clients struggled to keep up with dramatic increases in demand and extreme volatility.
In today’s manufacturing environment, uncertainty has become the norm. Geopolitical disruption, inflation, changing customer expectations, labor shortages, and volatile demand patterns are forcing manufacturers and distributors to make faster and more coordinated decisions than ever before. Companies that continue operating in reactive silos frequently struggle with excess inventory, [...]
We have entered a new era of with inflationary pressures. It started during the pandemic due to limited supply, but it has been spurred on with the rising oil and gas prices, commodity shortages, and rising food prices. Navigating successfully through these inflationary times will make the strong companies [...]
Inflation rose to 7.9% in February and continues to soar! Russia invaded Ukraine and trade has been halted. Oil and gas prices will continue to rise and seem to have no end in sight with some saying it will get to $200 a barrel.
