The heat is on
Market volatility
Cost predictions
Margin stopgap
Historically, there wasn’t as much economic pressure, volatility or need to manage margins. Today, CP manufacturers have been heavily impacted by market volatility and the increased costs of raw materials and production. Since these cannot be controlled, they need to be passed on to customers in order to avoid margin erosion. Why does this matter? All of this infringes on the negotiation of contract pricing.