Consumer goods price increases continue

De prijzen van consumptiegoederen stijgen snel. Cause: high demand and limited supply due to corona and problems in production and logistics. That will not change in the short term What is going on? And how do you deal with that?

Prices
The global commodity market and logistics landscape is unstable. Logistical problems due to corona, increased costs of container transport, pallet prices are rising due to scarcity in the timber trade and high demand from China. Deliveries are delayed and prices are rising. That situation will not change in the short term:

• Wood Needed for pallets. High demand for this biobased material. Sawmills have come to a standstill due to corona decrease. Softwood has increased in price by 50% since last autumn, tropical hardwood by 25%. Price increases for sheet materials vary between 6 and 60%
• Aluminium. Needed for our cookingware. Aluminium Price Index shows significant price increases. Beam samples are up 50%, ducts and pipes doubled. Delivery times are long and increasing.
• Fuel Needed for logistics. Additional component in addition to the scarcity of pallets (wood), availability of boats and trucks and container supply.

Tips
The price increases are a major financial risk, especially for distributors and retail. Partnerships contracted at the beginning of 2021 assume prices that are too low. Increasing prices in between is a necessary evil.
The big question that can be answered individually is: who will feel the increase in the purchase price? Or does the seller wait until the prices drop again and let the purchase price be at the expense of the margin for the time being.

ork on increasing volume, chain collaboration, innovation and understanding from your network.
• As a supplier, assume a realistic budget. his prevents failed collaborations and legal proceedings.
• Arrange in contracts what to do in case of price fluctuations. Limiting the financial risks of suppliers is also in the interest of buyers.