By Costas Xyloyiannis, CEO of HICX
By building better relationships with all suppliers (and not just a strategic few), brands can remain cost efficient, competitive and profitable, writes Costas Xyloyiannis
With inflation slowing down sales and blocking price rises, manufacturers are feeling the pinch. Many will react, as the sector has done for decades, by beating down suppliers on price. All this does though is bounce the problem around the supply chain. It drains suppliers of the resources they need to deliver vital enhancements – including supplies, information, and ideas – without which, brands are less competitive.
In today’s economic environment, which is riddled with uncertainty, this is not a position in which brands can afford to be. Rather, the goal is to be as resilient as possible. So, how can they protect these benefits in addition to their profits?
I strongly believe that brands can address this conundrum by supporting their Chief Procurement Officers to change how they work with suppliers.