Raw materials and energy prices increase |
 Raw materials prices increase associated with unexpected local decisions lead to products prices surge.
Increases more frequentResources rarefaction and raise of demand have lead for several months to an augmentation of raw materials and energy prices. And, following the financial crisis that is just starting to settle down, raw materials have become blue chips, which has lead their exchange rates to grow even higher. This inflation has shortened considerably the raises frequency, leading industrials and retailers to renew their tariffs more often. If it is now commun place to see semi annual or quaterly tariffs, will monthly ones be released soon? A world wide phenomenon amplified by local decisionsindustrials, retailers and end customers must adapt to a few months reduced visibility over prices, but also expect sudden variations. For example, reacting to the oil price surge, some asian countries, like Malaysia, world first latex gloves producer, have liberalized energy prices. As a direct result, all latex products prices have increased by 25% in june. Pedagogy and innovationIn this context of frequent raw materials prices augmentation, manufacturers and retailers cannot support the cost in full, at the risk of putting their businesses in danger.Therefore, it is necessary to inform customers in real time about the reasons of the increases. Furthermore, sourcing counselling to support buyers and end customers is more than ever a value added for hygiene professionals. Lastly, innovation, by enabling to get more with less and to cut costs while optimizing return on investment is certainly the answer to global prices increases that are not going to cease.
To know more: The significant case of MalaysiaThe impact of liberalisation of energy prices on the world first latex producer are without precedent. The Star online article on glove industry in Malaysia Yahoo finance article on Malaysian and Indian rises Paper and gaz exchange rates
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