Matt Miller’s Post

Though the US PPI came in year-over-year a little over 2% and the news is reporting "hot" CPI, most of the PPI is impacted by services. If you look at the intermediate demand by commodity type PPI it is slightly down year-over-year, and shows a clear declining trend. The take away is in general cost savings are more lucrative within materials than services. There are exceptions like software as a service which should be a top savings priority right now. Always happy to chat about future economic trends – no charge for talking. Reach out. https://lnkd.in/g7MA6YCu #procurement #strategicsourcing #RFP 

Current ISM report is showing a pretty significant decline from May to June, with only inventories and prices elevated. The report is showing the overall economy contracting.. Economic activity in the services sector contracted in June for the second time in the last three months, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business® rob202407svcs.pdf (ismworld.org)

S&P GLOBAL SERVICES PMI: Growth Slowdown in August 2023 The August US services purchasing managers' index (PMI) conducted by S&P Global came in at 50.5 --- just below the 51.0 forecast. The latest reading keeps the index in expansion territory for the seventh straight month --- however, represents the weakest growth over that time frame. #globalservicespmi

New: The latest region-by-region Purchasing Managers' Index reports are hot off the press. In December, business activity growth slowed amid a resurgence in Covid-19. You can read and download all the reports here https://lnkd.in/eBAjqZ85 #PMI

🚀 𝗙𝗮𝗰𝗶𝗻𝗴 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗹𝗶𝗸𝗲 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗹𝘂𝗰𝘁𝘂𝗮𝘁𝗶𝗼𝗻𝘀, 𝗽𝗿𝗶𝗰𝗲 𝗵𝗶𝗸𝗲𝘀, 𝗹𝗮𝗯𝗼𝗿 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀, 𝗮𝗻𝗱 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝘂𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝗶𝗲𝘀? Procurement holds the key to overcoming these obstacles with C-suite backing. By enhancing transparency and flexibility, informed decision-making becomes the norm, paving the way for increased efficiency, cost savings, and business expansion. 💡💼 #Procurement #BusinessStrategy #Efficiency #InformedDecisions

Manufacturing - For businesses that are exposed to elasticity re supply and demand, 2024 will likely present huge challenges. Supply chains will need to increase resilience to volatility, which incorporates greater costs and ties up working capital. The weighted average cost of capital is increasing which contracts consumer discretionary spending, lowers appetite for businesses to invest (gross fixed capital formation). This can drive up MRO costs to significant levels. Cost management is going to be key, while not stripping away quality and service levels, a challenging tight rope to walk. A keen eye should be on global logistics as increase tensions in the red sea could create inflation, coupled with oil supply being held back. Skills that business will likely require will include pricing strategy, cost management, cashflow optimization, supplier risk management and contract review. Entering long-term contracts in such volatile conditions could cause problems, especially around pricing and volume. #manufacturing #supplychain #procurement #Inflation

It should be a good year for procurement to generate cost savings. PPI is forecasted to be negative with a US economy that likely slides into a slight recession. It also means procurement should not be accepting increases without strong microeconomic proof. There's always pockets of disruption and inflation. I think going into 2025 we will start seeing growth and PPI increasing. Executing rapidly will be the key to maximizing value generation for your company. https://lnkd.in/g7MA6YCu

What does the drop in inflation mean to Procurement Teams, budgets, and savings Targets? When inflation was rising, organisations may have factored this into budgets - Your Procurement Targets may have included inflation expectation at 10% and cost avoidance targets relating to inflation. Suppliers may have sighted inflation as a reason for in-contract price increases. Are you adjusting your priorities and Supplier negotiations as a result of changes to inflation? Are you looking to smash targets that were set on previous assumptions? Or is this all immaterial to your Procurement strategy and how you manage your Supply Base?

Despite some easing in rates of inflation have stabilized, combating inflationary price increases remains high on executives’ 2024 priority list. Procurement teams should continue to develop capabilities in this area to manage price inflation closely with their suppliers. Read our new 2024 Procurement Key Issues Study to learn more. #procurement #inflation

 Inflation is an inevitable part of economic cycles, but it can significantly impact procurement departments. As prices increase, so do the costs of goods and services, reducing your organization's buying power and making it difficult to stay within budget. #procurementorganization #procurementstrategies #procurementtechnology