- Solution overview
Inflation is back – but are you prepared?
Genpact can help companies become intelligent and resilient as prices soar
For the first time in 40 years, the specter of inflation has returned to haunt markets. For CFOs who were just drawing breath after the unprecedented challenge of managing company finances throughout a two-year pandemic, the 8% average bump in prices is an unwelcome development. All indications suggest that this time, it isn't transitory either: pandemic aftershocks, fiscal stimulus, and supply chain troubles have all combined to help record rates of inflation stick around. It is clear that CFOs will have to do more than just hike prices and hedge to manage the impact.
Challenge
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?
Solution
Luckily, things have moved on since companies last went 10 rounds with inflation. Technology advancements have made it possible for companies to have access to solutions that are far more powerful in the fightback. To isolate and tackle high-risk inflation factors at their source and discover new paths to growth, leaders are looking to integrate and connect systems, streamline processes, and accelerate decision-making powered by data-led predictive insights. Genpact's multipronged solution to tackle inflation delivers on all these fronts – here's how:
Impact
Our solutions have a wide range of impacts. We help you tackle inflation right across the operational realm, from commodity price forecasting to intelligent sourcing and procurement to interpreting consumer buying behavior to supply, demand, and promotions management. The key impacts of our solutions include:
It is clear that inflation is not transitory, and leaders need to up their game if they want to limit its effects and continue to innovate and grow. They need to act across the organization's operations to manage inflation's pernicious effects and deploy intelligent, digitally enabled solutions to crunch data and deliver predictive insights that improve decision-making in real time. Times may continue to get turbulent, but there are solutions available to help you work around inflation and grasp scarce opportunities as they arise – with intelligence and agility – to deliver strategic value and competitive differentiation.