Many retailers today face two major problems: supplier cost increases and overall supply shortages that are driving inflation rates higher than have been seen in at least 40 years. As a result, retailers are experiencing a daunting dilemma: to choose between absorbing cost increases or to pass those costs on to consumers — neither of which is ideal.
Driven by capacity constraints, product shortages are also being rivaled by labor shortages, supply chain issues, international strife, a still-lingering global pandemic, war in Ukraine and other factors. Retailers are at the mercy of suppliers to fill the shelves as they experience a significant risk to the bottom line and potential lost sales. How can retailers tackle these challenges?
