Inflation in procurement

Ten percent always works – that’s what everyone who started in procurement learned in their first few weeks on the job. But with inflation setting in last year and currently reaching record levels in the European Union, the old mantra of ten percent cost reduction per year can no longer be realized.

We will show you strategies to circumvent the rising inflation and the tense situation in the commodity markets.

Our detailed specialized articles on the topic of inflation

Paradigm shift in procurement

The current price increases are the result of overlapping developments. Buyers have to avoid requests for increased prices as much as possible in order to minimize cost increases.

 

Slowing inflation: Procurement contra Food crisis

The current volatility in food markets highlights the concentration and global interdependencies in food production. It is also a foretaste of the consequences of climate change. 

Procurement teams with the knowledge of all of its cost drivers will find that not every increase is justified. This makes it possible to fend off price increases and look to adapt commercial models to ensure fairness for both sides when commodities start cooling off.

Thibault Lecat, Managing Director and System Leader LAB&F, INVERTO - BCG Company

Our latest publications

Food raw materials: Planning scenarios realistically
Food raw materials: Planning scenarios realistically
Kundenmagazin

Food raw materials: Planning scenarios realistically

The current volatile situation in the food markets is highlighting the supply concentration and global dependencies in food production.

Inflation: Paradigm shift in procurement
Inflation: Paradigm shift in procurement
INVERTO Magazines

Inflation: Paradigm shift in procurement

The current price increases are the result of overlapping developments.