Inflation Busters (CONT’D FROM PAGE 30)
Board Converting NEWS INTERNET DIRECTORY
“Customers are more willing to absorb increases during inflationary times when they can see it makes sense in the marketplace.” Waiting too long risks losing the opportunity, especially if inflation leads to a serious economic down- turn. “No one wants to absorb a price increase during a Today’s unexpected return of inflation has changed the operating paradigm for businesses large and small. The Great Recession of 2008 had sparked the habit of relying too much on just-in-time delivery of supplies to trim cash investments. Further, the recent willingness of custom- ers to accept price increases was exacerbated by supply chain disruptions. Now businesses must modify their cashflow manage- ment, inventory practices and pricing policies to reflect both rising costs and supply chain disruptions. “The boom- ing economy of recent times has allowed companies to pay less attention to market developments and still be fine,” said Anderson. “But now in a time of inflationary price increases, they have to do better. The job of manag- ing is tougher than ever before.” recession.” New Rules How Well are You Battling Inflation? Are you taking the right steps to mitigate the costly effects of inflation? Find out by taking this quiz. Score 10 points for each “yes” answer. Then total your score and check your rating at the bottom of the chart. Have you instituted the following practices? 1. Running periodic cashflow forecasts 2. Maintaining accounts receivable aging reports 3. Accelerating account collections 4. Stretching accounts payable, if appropriate 5. Keeping in close touch with customers 6. Identified the most valuable customers 7. Increasing productive communications with suppliers 8. Ensuring the compliance of any loan covenants 9. Trimming inventory while bolstering critical items 10. Raising prices judiciously What’s your score? 80 or more: Congratulations! You have gone a long way toward protecting your business from costly inflation. Between 60 and 80: It’s time to fine tune your financial management. Below 60: Your business is at risk. Take action on the suggestions in the accompa- nying story. Dealing With Banks By carefully managing cashflow, businesses can alleviate the profit erosion caused by inflation. In the accompanying article, experts describe how accelerating receivables, de- laying payables, raising prices, and fine-tuning inventory can help preserve the bottom line. Left unattended, a decline in profits can result in a dan- gerous financial condition: a breach of the terms required
ARC INTERNATIONAL www.ARCInternational .com
ARC International is a world leader in the manufacturing of roller products for flexography. The latest nano-technology laser engraving in our NC and NV manufacturing facilities ensures superior quality and consistency in anilox rollers.
AES (ADVANCED EQUIPMENT SALES) www.aesales.net
AES is a leading full-service provider of integrated convey- ance systems specializing in scrap, trim, and dust. AES en- gineers custom scrap systems and works as a partner in process improvement to help businesses achieve greater profitability, productivity, and sustainability. Products include balers, shredders/hoggers, core shredders, filters, fans, and specializeddust control andcollectionsystems. AES is theex- clusive distributor for the AirShark Rotary Material Separator.
AMERICAN CORRUGATED MACHINE www.acm-corp.com
For a wide variety of new and used equipment on to- day’s market, visit our website at www.acm-corp.com.
BAUMER HHS CORPORATION www.baumerhhs.com
hhs is a global leader in advanced gluing, camera verifica- tion and quality assurance systems for the packaging indus- try. Zero-defect quality and elevated production speeds are key parameters in the manufacturing of corrugated boxes. With hhs Xcam Box Monitoring and non-contact flap gluing of corrugated board, hhs offers every option for quality as- surance in the production of boxes with flexo folder gluers. BLOWER APPLICATION COMPANY (BLOAPCO) www.BloApCo.com BloApCo has served the corrugated industry since 1933 with a variety of scrap handling solutions, including Hori- zontal Floor Shredders, Trim Cutters, and Material Handling Fans and Conveying Systems. BloApCo Shredders allow for continuous shredding and pneumatic removal of sheet waste stacks of all sizes, roll slab, cores, and carton scrap.
CORRUGATED MACHINERY SPECIALISTS www.cmsretrofits.com
Leading manufacturer and installer of quality retrofits, up- grades and replacement parts for S&S and Prime Flexo Folder Gluers. Specialists in reconditioning of S&S Flexo Folder Gluers, including ink, air and electrical systems.
CORRUGATOR BELT SERVICE LLC www.corrugator.com
Serving the corrugated box industry since 1991, Chicago- based Corrugator Belt Service LLC maintains corru- gator belts for peak board quality and performance.
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32 May 2, 2022
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