During the early stages of a contraction it will be easy to pass on the impact of inflation on to customers. However, that time span is short. Once the customer either feels its full effect or is paying attention and can see the immediate future, price increases will destroy demand.

The long-term answer is manage operations - all processes to build it better and faster at lower cost.

Topics: Improve Supplier Relationships Move from supplier-buyer to an alliance-partner realtionships Improving Quality to Reduce Costs Value Mapping Accurate Standard Operating Procedures (SOP's) All Position Descriptions are process based Improve Distribution Channels - Next Week