Despite highly challenging macroeconomic conditions, supply chain and procurement professionals are responsible for managing their organizations’ value chains.
Today’s global economy is facing significant challenges, which is an understatement. Consumer and producer price index inflation indices should be closely monitored.
What can retailers and manufacturers do to mitigate the increased prices at which products need to be purchased? How can manufacturers and retailers adopt other longer-term and systematic methods?
Here are 3 tips we at ACA International consider important to follow.
1- Improve the inventory’s form and function
Manufacturers and retailers are hit twice by high PPI and high-interest rates. In addition to the price at which they purchase products, inventory carrying costs also increase. Inventory must be placed at the right place, at the right time, and the right price.
2- Enhance the efficiency of business expenditures
The current business climate requires visibility into all direct and indirect expenditures and diligently reducing expenditures without impacting performance.
3- Build better relationships with suppliers
This dramatic price increase can be mitigated by building a trusting and transparent relationship with suppliers.