Supply Chain Pressure Could Ease as Inflation Starts to Fall

Wednesday, 16th August, 2023

As UK inflation slows to 6.8%, there's hope that some of the supply chain pressures we've been experiencing may start to ease in coming months. For years, we've been living in a low inflation and relatively stable environment, but the high inflation companies have been exposed to more recently, has demanded a strategic re-think to create resilience.

A resilient supply chain is one which has end-to-end visibility and an ability to predict and be proactive. Accelerated by necessity on the back of the pandemic, many industries embraced the adoption of digital solutions. Supply chains across the world have been quietly revolutionising their ability to leverage intelligent data analytics on the back of new technology platforms, in virtually every industry sector. After suffering the consequences of poor visibility, outdated systems and a lack of predictive capabilities, the aim of these investments is agility, resilience, risk and cash management, predictive capability with a future-proofed supply chain, poised for growth.

According to Accenture, “Inflation should not be seen as a threat but as a strategic opportunity to create a competitive advantage.”

Commenting on today's inflation news, Paresh Raja, CEO of Market Financial Solutions, said: "Another step in the right direction, with today's CPI drop following on from the smaller-than-expected base rate hike at the start of the month. But it might be a case of two steps forward, one step back; all the talk this week has been that we are in for a shock rise in inflation when next month's data comes out on 20 September. Given the Bank of England's next interest rate decision follows the next day (21 September) that will likely prove a hugely important 48 hours.