Forget inflation Focus on hysteresis
There is indeed dynamic management from your buying teams to alleviate the impact which has been very successful. This dynamic management has also reduced the impact of the second wave associated with our inflationary wave: shortage.
My colleague Ken illustrated this point clearly in his short video posted on LinkedIn
During the last few months, we have all felt the impact of inflation; vendors have been extremely effective at communicating rises they were not able to offset.
At successful organisations, we have seen the dynamic approach, which basically consists of multiplying the sources for both key and less key products, softens the blow of crazy supplier letters asking for $100 a ton or 10% increase on steel every three weeks.
Inflation is important and “dramatic”, true, but may be less impactful than previous cases of localised inflation, because it can definitely also help your business to pass on that increase to your clients. Margins will be indeed affected but it has been proved that it has also been relatively possible to pass it on to the clients.
Why are we calling hysteresis the killer hill that coul
