b'30 Business Managementto manage their supply chain network to maintainand explain you are only passing them along. A strategic inventory stockpiles. company will have more leverage to raise prices if it has offered great service and maintained inventory.Also relegated to history is the unmodulated just in time (JIT) delivery paradigm seen as a strategicAboveall,avoiddelay.Businessesaremost hallmark after the great recession of 2008. Whilesuccessful at raising prices when they do so quickly, JIT helped companies maintain good cash flow bysaidAnderson.Customersaremorewillingto trimminginventoryinvestment,thesupplychainabsorbincreasesduringinflationarytimeswhen debacle highlighted the importance of moderation.they can see it makes sense in the marketplace. BusinesseshavetoaskwhetheritsbettertoWaitingtoolongriskslosingtheopportunity, have too much inventory or to run your customersespecially if inflation leads to a serious economic out,saidAnderson.Giventhatneithersituationdownturn. No one wants to absorb a price increase isideal,Andersonadvisesmaintainingsufficientduring a recession.inventory stockpiles to support key customers while maintaining JIT stock for others. New RulesTodays unexpected return of inflation has changed Beefing up the stock of critical items can be a smartthe operating paradigm for businesses large and moveevenintheseinventory-cuttingtimes,saidsmall. The Great Recession of 2008 had sparked McQuaig. Given the continuing supply chain issues,the habit of relying too much on just-in-time delivery stocking out of a needed item can result in the lossof supplies to trim cash investments. Further, the of important customers. recentwillingnessofcustomerstoacceptprice increaseswasexacerbatedbysupplychain Thedecisiononoverstockingkeyitemsmustbedisruptions.Dedicated to keeping its members at the forefront in their industrymade on a case-by-case basis. Generally speaking, its a good idea, said McQuaig. The danger is theNowbusinessesmustmodifytheircashflow possibility of running out of cash if you do not havemanagement,inventorypractices,andpricing enoughworkingcapital.Companiescanobviatepoliciestoreflectbothrisingcostsandsupply such difficulties by running the monthly or weeklychaindisruptions.Theboomingeconomyof cash flow forecasts described earlier in this article. recenttimeshasallowedcompaniestopayless attention to market developments and still be fine, Raising Prices said Anderson. But now in a time of inflationary Askingmoreforgoodsandservicesisanotherprice increases, they have to do better. The job of way to adjust cash inflows. Businesses are verymanaging is tougher than ever before.hesitant to raise prices when they dont have to, said Conerly. And they often get push back from theirAbout the Author: Phillip M. Perry is an award-salespeople. But the fact is, buyers are accustomedwinning business journalist based in New York to seeing price increases in inflationary times. City. He covers management, employment law, finance and marketing for scores of business Pricechangesmustbecarefullycommunicated.magazines.Give the white-glove treatment to tier one customers by reaching out and explaining how your costs are rising,saidBeaver.Communicatetothemthat the price rise is only temporary. One approach is to tell your most important customers that you are absorbing 20% of the price increases and passing alongtheother80%.Anotheristoseparateout any fuel charge increases from the delivery costs The InsulatorDecember 2022'