Handling inflation within the sourcing strategy of HP Valves Oldenzaal B.V.

Strategic management of inflation in sourcing is crucial for modern businesses, yet existing models often overlook inflation's impact, focusing mainly on general costs. Bridging the gap between theory and practice, this research aims to create a practical inflation model adaptable to diverse economic scenarios. Through literature review and expert interviews, key steps are identified, including assessing cost pass-on ability, strategic positioning using an inflation heat map, method selection, and implementing actionable strategies. The study emphasizes nuanced approaches, considering factors like supply or demand-side inflation and diverse industry challenges. Insights from professional interviews reveal various inflation handling levers. The proposed model integrates strategic insights with an inflation matrix, offering a systematic approach for organisations to strengthen their sourcing strategies amidst inflationary pressures. This innovative approach aims to empower organisations in formulating and deploying effective inflation management strategies.