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BLOG / Commerce

Inflation and Supply Chains – Survive or Thrive?

February 03, 2022

As we all know, it is one of the sharpest economic contractions in history. After 2 years of the Covid–19 recession, the countries are rebounding rapidly and are anticipating a new-post pandemic future. As an indicator, inflation is at its peak in three decades. The supply chain and demand are strained during the process of bouncing back from the impact. As a result, there is a substantial increase in shipping costs and delivery lags. Furthermore, inventories are diminishing and firms are facing challenges to obtain production inputs.

According to Forbes, the effect of inflation on some enterprises might seem insignificant for a short period but it will eventually create an impact. Inflation creates an erosion of purchasing power and increases the cost of borrowing. As a result, there is a shortage of finished goods. Businesses must make the right strategic decisions to determine and manage the effects of inflation by consistently evaluating the different parameters of business such as geographical markets, type of clientele, and various distribution channels.

Ingram Micro is a pioneer in connecting global and local markets, technologies, and resources across markets and selling products. It has the best-in-class experience and expertise to cater to businesses across various dynamics quickly, efficiently, and accurately.

Additionally, market leaders will need to have an integrated approach to overcome supply chain bottlenecks. They will also need to adopt a strong operational strategy with a combination of financial planning and demand forecasting. For example, businesses can anticipate disruptions, volatile labor markets, wage increases, and other external factors that could hinder the flow of supply chain processes. This method also facilitates improving business oversight that can help to make better decisions to maximize profitability. As a result, it is favorable for businesses to stay ahead of their competition.

Ingram Micro is the world’s largest distributor of products, offers logistics solutions in order to stay a step ahead of market changes to help overcome challenges that are faced by businesses.

In conclusion, supply chain businesses are the most constrained with several challenges and are thriving by taking significant measures to make a difference to whether inflation. Companies are investing in identifying the opportunities and potential solutions to ensure the right plan is in place to combat inflationary pressures. To sum up, supply chain enterprises are strategically investing while improving their resiliency as they overcome high inflation and also position themselves to outpace during these volatile market conditions.

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Tony Popson
Tony is the Executive Director of North America Commerce at Ingram Micro Commerce & Lifecycle Services.
Connect with Tony Popson on LinkedIn

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Tony Popson 2022-02-03
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