China just raised your prices 3
Few things have been more exciting over the last few years than managing inventory. Shifts in behavior such as lockdowns, shifts in demand due to changes in worker behavior had made planning more complex.
EkaLore has been posting a series of pieces on inflation. This is the third post in a series called – China Just Raised your prices.
Inventory discipline has eased as assumptions favoring more inventory (finished goods on hand and in transit) over the possibilities of too little inventory. The huge amounts of ‘COVID-19 restart’ products in 3PL, Amazon, and in-house warehouses will not be cost matched by new production. The key is understanding decision-makers often decide elements like pricing using ‘short cuts’ (like BOTE) without understanding (or caring) about all of the constituent factors.
Post-Covid-19 shifts in consumer, industrial, and government – all enterprises – spending patterns and priorities will additively (and materially) increase prices piled on top and multiplied together. Here are four increased costs every enterprise will pay:
1) Increased costs of energy
2) Increased costs of information security
3) Increased costs of logistics (on top of energy increases for transport)
4) Increased costs of financing
Economics plays no favorites – and raising prices will be everyone’s headache.
If you're looking for an outside opinion on how all these prices increases are going to affect your enterprise, why schedule a free 20-minute call with a Senior Analyst?
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