Manufacturers everywhere are feeling pressure from inflation due to continued material shortages, rising logistics costs and a red-hot labor market.
Maplewood, Minnesota-based 3M (NYSE:MMM) is no exception, but CEO Mike Roman said his team is seeing results from a tried-and-true solution.
“We continue to navigate global supply chain disruptions, which have been amplified by recent geopolitical unrest,” Roman said on today’s conference call to discuss the company’s first-quarter financial and operating results. “We are doing whatever is necessary to take care of customers, while managing extended lead times and elevated inventory levels. At the same time, we have continued to drive strong pricing to offset inflation.”
3M developed new pricing tools last year and is “rolling out tools that model price realization, leakage and elasticity,” said 3M CFO Monish Patolawala, who also serves as EVP and chief transformation officer.