Stagflation... Do You Know What It Is?


Do you know what it is?

Slow economic growth, relatively high unemployment, and inflation. All of this leads to lower demand on average.

No one is average though. Every business will have to contend with this over the next 12-36 months.

There are comparisons to 1981. The difference this time is that it is more of a logistics nightmare than a supply and demand problem.

What does it all mean for your business?

We’re already seeing the large companies prepare with their own version of shrinkflation – Pay attention to how many grams are in the food products you buy.

There is a playbook for this.

1. Forecast – Worst, Best, Likely scenarios (Financial and customer)
2. Complete the Triple C – As a result of the forecast what will I cut, what will I Control, and what will I Continuously Improve? (The best will invest in the right areas to come out of this on top).
3. Execute – Translate the decisions to action. Weekly.

This is the exercise we’re working through with our clients today.

Don’t let this run you over.

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    May 8, 2022