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Five Smart Strategies to Battle Inflation – CPO Rising

Five Smart Strategies to Battle Inflation – CPO Rising

Procurement departments play a critical role in managing inflationary pressures.

To cope with the new challenges, they can adopt fresh approaches and innovative thinking, CPO rising suggests in five strategies to overcome inflation:

  1. Improve Category Management: Understand each category’s needs to negotiate better pricing and terms, build stronger relationships with suppliers, and create a more reliable supply chain.
  2. Strict demand management: Involves balancing the supply of goods and services with customer demand. This requires companies to have a good understanding of the demand for their products and services, enabling them to adjust their production and distribution plans to minimize costs and mitigate inflationary pressures.
  3. Inventory management: Inventory management reduces costs by optimizing inventory levels and minimizing waste through adjusting batch sizes and order frequency, thereby reducing the need for price increases due to inflation.
  4. Defend Existing Contract Pricing: Protect existing contracts with suppliers, customers, and stakeholders to maintain stable pricing and reduce the effects of inflation. 
  5. Maximize Low-Price Contracts and Build Inventory: Secure supplies at a lower cost and reduce the impact of inflation by taking advantage of low-price contracts and building inventory.

Go to CPO Rising to read more. 

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