You had better watch out!

The perfect storm is coming and if you are in supply chain you had better be prepared. Statistics Canada | Statistique Canada often posts summaries of what they are expecting to happen.

Interest rates are rising, debt is rising and there is still a shortage of skilled employees. When you can find the talent, then you are faced with escalating wage expectations.

All these factors increase the cost to the supplier yet supply chain professionals are often driven to maximize savings.

As a supplier, it is a challenge to pass on any price increase regardless of how much it is warranted or substantiated. Too many organizations are focused on year-over-year savings.

Some suppliers are forced to cut corners or become creative. Shrinkflation is a term that is often used when you provide less with the same packaging.

Other suppliers simply don’t have the cash flow to pay their bills. This means they get behind on their Workplace Safety and Insurance Board premiums and the payments for their insurances.

As a supply chain professional, you should be aware of the financial health of your suppliers. If you don’t then you might end up scrambling when they go out of business.


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