Is inflation on your mind? You’re not alone. Rising costs lead to rising overhead—and rising stress about sourcing.
Not only is it more expensive to get crucial goods and services today, but supply chain issues and labor shortages create extensive delays. These disruptions significantly affect large and small companies' production and inventory.
Plus, rising fuel costs mean that getting everything from hand soap to building supplies requires an even bigger financial commitment, which could be going toward marketing, R&D, or expansion.
And yet, despite all the talk about the financial impact of inflation on sourcing, there’s an important point missing.
Inflation, at its core, isn’t really about money. It’s about uncertainty.
This is good news because organizations that solve for uncertainty can maximize value and thrive despite economic change.
How to Mitigate Uncertainty
There are five key factors that are crucial to navigating sourcing uncertainty when inflation, supply chain issues, fuel shortages, and labor issues mean certain goods and services are in short supply.
First, companies that can see what’s available and act quickly have a significant edge. Agility and increased visibility are key competitive advantages.
So is having the right partners. Solid relationships with a variety of vetted and trusted suppliers not only make it easier to purchase what’s needed. These relationships also significantly mitigate risk, reducing the likelihood of overcharging or receiving poor-quality goods and services.
Third, having the ability to easily participate in community buys can dramatically increase leverage, reducing costs and increasing purchasing power.