Commodity procurement & risk management

Supply Value conducted research into commodity procurement & risk management. Still a hot topic today. Purchasing departments are confronted with volatile prices. As a result, the challenge of securing sufficient raw materials of the right quality at a suitable price is increasing. That requires a strategic approach.

Organizations should be aware of risk management when purchasing agricultural raw materials. This is apparent from theoretical research and discussions with eleven food experts and purchasing professionals of agricultural raw materials. A number of recognizable challenges that pose risks for purchasing departments are:

  • When is the right time to conclude a contract and purchase raw materials?
  • How many raw materials do you need to buy?
  • At what price are you going to buy?
  • How long do you let the contracts run for?
  • How do you deal with differences in culture, climate and time difference, etc.?

Research report
The study identified the causes of price volatility, developed risk management measures and designed a plan to help you select risk strategies that are most relevant to you. Download the entire research report below.

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