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Minimizing Commodity Volatility Through Advanced Commodity Management and Hedging Approaches By Jason Busch and Lisa Reisman (with additional commentary from Brad Clark, FIS Senior Derivatives Broker) Pursuing a procurement and supply chain-led commodity management strategy might at first seem like a relatively basic endeavor. But trust us, it’s not. Organizations must have the right combination of skills, technology, and market information to manage and act on information and contracts. This Spend Matters / MetalMiner analysis explores the capabilities that organizations need to better manage volatility across their spend portfolios primarily on the base materials/ingredients level including raw material spend “owned” by suppliers and related spend analysis, demand aggregation strategies, direct materials sourcing strategies and supplier contracting models to minimize risk — all from a procurement and supply chain perspective. |
| Commodity Management Solution Fundamentals by Jason Busch, Executive Editor, Spend Matters Procurement executives who previously ran programs driving indirect and services procurement spend category cost savings, and direct programs to identify, qualify and implement global suppliers, now find themselves scrambling to renegotiate with suppliers who will no longer honor contract pricing terms. Yet typical discrete manufacturers, food and CPG companies across the globe are just beginning to address the structural changes they must make towards their organizations and procurement/supply chain orientation to thrive in the new market environment. |
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A Direct Materials Guidebook – Six Key Principles for the Manufacturing Road Ahead Co-authored by Jason Busch, Managing Director, Research, and Thomas Kase, Lead Analyst, Spend Matters Any future evolution of direct procurement will undoubtedly build on the significant shifts we’ve seen in global manufacturing in the past two decades. In this next stage of growth, Spend Matters believes technology will catch up to current market requirements. In addition to focusing on the business skills and process change required to drive a new level of direct materials sourcing and supplier management success, this transition requires a new system of record for direct materials as well as a new way of thinking about how best to support business requirements. |