Input costs can have a significant impact on a company’s margins, and it’s essential to have a robust strategy in place to mitigate these effects. In this blog post, we will explore three key strategies that companies can use to protect their margins in the face of input cost increases: securing supply, portfolio mix shift, and operational levers.

1. Securing Supply:
Securing a stable supply of inputs is crucial for maintaining margins. This involves building strong relationships with suppliers, negotiating favorable contract terms, and investing in supply chain optimization. By securing a reliable supply of inputs, companies can better manage their costs and avoid price volatility.
2. Portfolio Mix Shift:
Another strategy for mitigating input cost increases is to shift the product mix towards higher-margin products. This involves identifying areas where the company can differentiate itself through product innovation or quality, and investing in these areas to drive growth. By focusing on high-margin products, companies can reduce their exposure to input costs and improve their overall profitability.
3. Operational Levers:
Operational levers involve using various tactics to reduce costs without compromising product quality. This can include repricing long-term enterprise contracts, product redesign, and optimizing production processes. By leveraging operational levers, companies can maintain their margins despite input cost increases.

In addition to these strategies, companies can also prioritize growth in key areas such as Print, Big Tank, and industrial. By focusing on these areas, companies can not only mitigate the impact of input costs but also drive long-term growth.