Coping with devaluation_2
3 April 2012
Q: How can you best manage contracts in an environment where devaluation has occurred and foreign currency is in short supply? At the moment, this is causing big problems for my company in Zimbabwe. Some suppliers are asking for frequent price increases,
A: John McCleland, managing director of ADR International South Africa, writes: This is a very difficult situation and one that requires the application of more sophisticated thinking, as there are no simple “quick wins” to counter such macroeconomic factors.
One approach is to segment your suppliers to identify if there are any alternative sources...