![]() In an unstable market, relying on big single contracts with one or two suppliers can be risky. In such a competitive market, now is not the time to be late paying that invoice. Which is why relationships with suppliers are critical – ensure you work closely with your partners. Getting stock is often more important than price, highlighting the need for strong supplier relationships. Retail has struggled with supply chain issues during the pandemic, particularly regarding food availability. “Good news is, if you power your business, with good data, insights, and systemised tools to enable you to balance this, you can achieve it quite well. However, businesses can react flexibly to cost changes by adjusting their buying prices. ![]() Customers need price stability, as demonstrated by the recent inflation crisis. “And unless that’s in the muscle of your company’s commercial engine, you will find this very stressful to deal with.”īut, unlike the airline industry where consumers are used to fluctuating prices, retailers should not consider dynamic pricing an opportunity to fluctuate the price of milk from week to week. ![]() “We’re in a world where we have to plan for volatility,” says Burton. While the markets seem to be moving away from volatility with IGD expecting inflation to get close to 0% in 2024, there is still so much uncertainty from the likes of events such as the Ukraine war and unpredictable weather patterns which have impacted salads grown in Morocco and Spain. Although the food price index has dropped, it may take time for manufacturers, retailers, and consumers to benefit from this trend. The past six months have been a roller-coaster for the food supply chain, with a sharp increase in staple prices such as wheat, cooking oils, and sugars after the pandemic and Ukraine's invasion.
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