The supply chain is an extensive and dynamic process that integrates factors that directly impact the efficiency and quality perceived by consumers of companies. This is why economics plays a key role in this field, since any change of this type can affect the functioning of the supply chain.  

Inflation, being an economic phenomenon where increased costs are the order of the day, has an indiscriminate impact on the supply chain. The most frequent impacts generated by this phenomenon are increases in the costs of raw materials, in production, in addition to possible interruptions in logistics and transportation, which has a direct impact on the final value of the product or service and, therefore, in the variation of supply and demand. 

How to reduce the impact of inflation? 

It is possible to reduce the impact and consequences of inflation in the supply chain. The key is anticipation through solid strategies: 

1. Visibility: Adapting end-to-end tools will allow you to obtain a complete view of the supply chain. It is important to highlight that visibility will allow you to obtain information in real time to detect errors in time, in addition to being able to make more precise and informed decisions.  
2. Analysis: The analysis and evaluation of the processes will give access to real data and predictions of possible scenarios, which will allow us to anticipate and reduce risks in the event of any unexpected event. 
3. Flexibility: Maintaining a flexible posture and adaptable to change is one of the main challenges for organizations. But at the same time, it is one of the most important and decisive factors in overcoming phenomena such as inflation, since innovation, versatility and the generation of value emerge from adaptation to change. This will allow it to maintain its position and overcome the challenges that this economic event brings with it. 

It is key to establish that these strategies are three of the main ones to evaluate in companies and that from them arises the planning of other vital factors to mitigate the risks of inflation, such as inventory optimization, contract negotiation and diversification of suppliers. In addition, sustainability strategies will be an important tool to increase competitiveness and value generation in times of inflation.  

Referencias: GEP