摘要: |
INFLATION AWOKE FROM ITS SLUMBER IN 2021, as the U.S. Producer Price Index quadrupled relative to the preceding decade. Inflation takes two forms: cost-pull inflation, driven by higher input prices; and inflation that occurs when demand persistently outpaces supply. Cost-pull inflation is currently evident across global supply chains in the rising cost of everything from raw materials (e.g., metals +26%, wheat +50%), to energy (+110%), to transportation (trans-Pacific container +300%, airfreight +50%, OTR freight +20%) and on through to labor, where companies must compete even for "unskilled" labor in many markets. Unabated, inflation could depreciate currencies to further erode international purchasing power. Even if overall costs level off, unexpected price spikes seem likely to persist for certain essential items, particularly if supply is disrupted by unanticipated events. There is no magic wand to make inflation disappear, but you can take decisive steps to safeguard your company's operating margins. In fact, if you know where to look you can find profit-protection opportunities across your supply chain. |