9% Inflation

You’ve probably already noticed that inflation is over 9% and in some sectors even higher (in energy even a 40-60% increase!).

This means that the money you have left over is simply worth less.

Think of your (savings) money as a big bowl of ice cream.

Inflation is like raising the temperature and slowly melting your ice cream.

It really is a tricky one. If you had €100,000 in a bank account, and you look again at that €100,000 nothing seems to have changed. It feels safe. It’s still there.

But that €100,000 won’t buy you the same as last year. The amount is the same, but the purchasing power has decreased. Like a battery from your old cell phone that only lasts 4 hours even after “fully charged.

And guess what: this also affects the cost of materials, everyday products, services and even personnel costs (because salaries have to come along for the ride eventually).

So apart from your reserves melting like ice under the sun, it also changes all the prices we are used to. In short, all prices are increasing.

Here’s the point:

As a manufacturing company, you will therefore have to rethink the price of each product. Each tier should be reviewed based on fixed costs and variable rates. And that could mean what you may even have to find other suppliers, possibly with longer lead times.

In short: uncertainty in your pricing and delivery reliability.

Therefore, you need to have a digital system for your quote pricing (that is not in an Excel sheet). And that’s why you need dynamic planning, not a weekly MRP run with outdated data.

You need to be able to work dynamically without spending days or hours doing everything manually again. That’s one of the reasons why you need to digitize. And better start now, because these shifts are not temporary.

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