MANAGING THROUGH INFLATIONARY TIMES: Local PNC leader shares how digital innovations and other strategies are helping businesses manage through inflation.

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This is the twenty-third in a series of informative monthly articles for North Carolina businesses from PNC in collaboration with BUSINESS NORTH CAROLINA magazine.

With inflation recently reaching a 40-year high and interest rates on the rise, business leaders in North Carolina and beyond continue to manage rising prices and confront the headwinds of supply chain challenges and labor shortages. For many c-suite executives, ongoing inflationary pressures are bringing into focus the countermeasure of digital deflation and the return on investment of digital solutions, as well as the business imperatives of other long-term strategies to combat inflation and market volatility.

Donna Perkins, who leads PNC Bank's Commercial Banking business for the Western Carolinas market, has helped local companies navigate the consequential market disruptions of the past two decades, from the burst of the dot-com bubble, to the Great Recession, to the COVID-19 pandemic and inflationary pressures of the present day. Two prime factors distinguish the current climate from previous periods of disruption, she says. First, the labor challenges that continue to persist in multiple industries. Second, the increased adoption of digital solutions, including those automating key finance processes, which can streamline operations for companies of all sizes.

To address the unique drivers that define today's market, Perkins shares the following tips for businesses to consider.

* LEVERAGE TECHNOLOGY TO OPTIMIZE CASH FLOW.

Accelerating receivables and streamlining payables are two examples of business processes that took on increased urgency during the pandemic as executives worked to improve business continuity and resilience, says Perkins. "During the past two-plus years, we've seen a significant uptick in the adoption of digital treasury management solutions among business leaders, including those previously reliant on paper processes and those who may have once dismissed the idea of automation due to company size or setup. "Today, these companies have better control over incoming cash, which allows them to focus on other pressing business needs. For businesses in the beginning stages of their automation journeys, this is a moment in time when the benefits of digital innovations are becoming increasingly apparent."

* FOCUS ON EMPLOYEES. The Great Resignation and ongoing labor pressures have underscored the importance of delivering competitive employee benefits packages...