{"id":73358,"date":"2022-10-10T10:28:43","date_gmt":"2022-10-10T08:28:43","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/inflation-paradigmenwechsel-im-einkauf\/"},"modified":"2024-09-16T10:19:28","modified_gmt":"2024-09-16T08:19:28","slug":"inflation-paradigmenwechsel-im-einkauf","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/inflation-paradigm-shift-in-procurement\/","title":{"rendered":"Inflation: Paradigm shift in procurement"},"content":{"rendered":"
Ten percent has always been possible \u2013 anyone who started out in procurement learnt that in their first few weeks on the job. It has mostly been like this for the last 50 years. But with inflation starting last year, and currently ranging in the European Union and the United Kingdom from 6.5% (France) to 25.2% (Estonia), the old mantra of cost reduction by ten percent per year is no longer achievable. Procurement departments need new strategies.<\/p><\/div>\n
According to Eurostat, producer prices rose by 37.8% across the EU in July. Analysis by the Cologne Institute for Economic Research found that 2022 will \u201cfar exceed the cost shocks of the mid-1970s, early 1980s and immediately before the global financial crisis\u201d – even if the increase does not pick up speed from now on.<\/p><\/div><\/div><\/div>\n