Today’s post is by Patrick Quinn is a Procurement Specialist at SafeSourcing Inc.
The inflation rate from 2021 was a top concern for businesses of all industries and scales, and nearly everyone is concerned about when, and if, rates will drop off.
Fortunately, many economists predict that the rate will fall in a significant fashion. Unfortunately, it will likely not fall at the rate they had hoped just a month ago. Optimistic outlooks predicted inflation will fall to 2.6% by the end of 2022, down from 7% at the end of 2021. Now, the outlook is not so clear. Household necessities such as rent and clothing costs are still rising, but other costs, such as meat and gasoline, seem to already have found a balance in the new market.
As a result, different industries are facing different challenges in 2022, and cost management looks very different from business to business. For example, retailers are focused on managing new demands in labor costs, and manufacturers find themselves getting hit with rising materials costs.
However, by using e-procurement to proactively evaluate the market, these concerns can be highly mitigated. But the severity of a rising market varies from cost to cost. The reason for a price increase can stem from a number of different issues, and by using e-procurement to source suppliers driving different costs, inflation can be met at its minimum rising rate, instead of having your costs rise at the sum of its different components.
To help you find the source of your rising costs, please contact a SafeSourcing Customer Service Representative.