1、CONSUMER PRODUCTSH1 2023 Cost Inflation OutlookHow will cost inflation track for Consumer Products companies in 2023 and what do they need to do as the cost-of-living crisis bites and consumer demand starts to contract?Last years AlixPartners Cost Inflation Outlook predicted an increase of more than

2、 10%in consumer goods company input costs,potentially reducing manufacturing EBITDA by 20-30%.Given the added pressure of the war in Ukraine and the intense need for companies to respond with mitigating actions,we have revisited the opinion of industry executives and experts for the year ahead,provi

3、ding another insightful set of predictions for 2023 and a view of the strategic actions that leadership teams are taking to counter inflationary and other disruptive forces.In support of the studys findings,you will also find in this report the thoughts of our global team of industry experts,as they

4、 reflect on the lessons learned in 2022 and the critical actions to consider in the next 12 months,including:Increased analytical capabilities to stress-test pricing strategiesThe importance of product portfolio managementGreater transparency,flexibility and action in forecasting and addressing supp

5、ly chain issuesThe opportunities presented by a“no-stone-unturned”business mindset Cost inflation will remain a persistent issue for many Consumer Products companies 73%of our respondents expect overall costs to rise by 5%or more in 2023.told us input costs(direct and indirect)increased by 11%or mor

6、e in 20224 IN 10were the most important lever used in 2022 to counter the effects of inflationSTRATEGIC SOURCING INITIATIVESof respondents anticipate further cost inflation in 2023 73%Will be prioritizing contract price fixing53%Will be redesigning products to reduce cost40%The top five capabilities