There's a perfect storm brewing
Challenges abound for organizations today. Soaring commodity prices, a shortage of skilled talent, and rises in manufacturing, packaging, and transportation costs are making it hard to plan, procure, make, and deliver products and services. Companies are already managing these difficulties in several ways – absorbing costs, altering price-pack architecture, raising prices, collaborating with suppliers, and cutting their revenue outlooks. But there is a problem: pricing actions have a built-in lag – they don't have an immediate effect on financial results. Additionally, they rarely cover input costs, and there's a real risk that customers will get fed up with price escalations and delays and switch their brand loyalty, causing lasting damage.
So, what can CFOs, procurement leaders, and chief supply chain officers do to steer their organizations past these obstacles and secure long-term, sustainable value creation?