According to Material Handling & Logistics, consumer tastes in the automotive industry for example have caused manufacturers to bring in new parts on their material handling carts, as more people are interested in SUVs and trucks as opposed to passenger cars. This shift has caused a ripple effect in the overall product line to ensure automotive manufacturers are still able to retain market share.
If you start to notice your supplier’s price creep up, it could be time to reassess the relationship. According to Entrepreneur, price and reliability are the top considerations you should always look for in a supplier. If you have a supplier that has increasing prices due to market shifts but are still a reliable partner in getting you your materials on time, you might need to decide between the relationship and making budget adjustments to better prepare for the shift.