How business operations can respond to price increases: A guide for Israel’s CEOs

Today, business leaders in Israel face diverse challenges, from geopolitical frictions to prolonged public-health crises. That uncertainty creates challenging conditions for organizations both within Israel and across the developed world, with rising prices topping the list.

The situation has exposed the limits of the two conventional responses to cost increases: pricing and procurement strategy. Pricing isn’t providing the answer. Even if contractual arrangements allow it, and customers are willing and able to pay more, those increases do not always cover additional input costs. The result is thinner margins, lower sales volumes, or both.

Companies need better tools to tackle rising prices, and CEOs can look for them across their business operations.