As commodity prices have continued to fall, the questions my colleagues and I are most frequently asked is, “should we lock in prices while they are low?” And “if so, when will we hit rock bottom?”
Obviously, I have no qualms with buyers wanting to get the best prices for their direct materials and indirect services, [...]
“Locking in prices”: Indexed vs Fixed
January 7th, 2009 · 3 Comments · best practices, contract management, sourcing, supplier management, supply management, supply market dynamics, supply risk
Tags: buyer's market·commodities·contract management·indirect materials·indirect spend·metals·procurement·recession·sourcing·steel·supply risk
If you are not sourcing now, why not?
November 26th, 2008 · 5 Comments · LCCS and trade, Services Procurement, automotive sector, best practices, oil/energy, sourcing, supply management, supply market dynamics, supply risk
Many key commodities (Copper, Nickel, Zinc, Aluminum, Lead, Rubber, Resins, etc.) that go into the parts that we buy and the energy (Crude oil, Furnace Oil, Coal etc.) our suppliers are using to convert the raw materials into finished goods are at two, three and in some cases four year lows. Due to excess [...]
Tags: buyer's market·commodities·indirect materials·oil/energy·plastic·recession·sourcing·transport
Dear Commodity Buyers, Don’t give up!
August 4th, 2008 · 2 Comments · best practices, sourcing, supply management, supply market dynamics
Over on Spend Matters, Jason Busch recently brought attention to McDonalds’ ever rising commodity price increases, which they are soaking up rather than passing on to their customers. As Jason notes, McDonalds’ expects cheese to rise 21%, chicken 5-6% and beef 8-9% this year. So, why not raise prices on their menu? Well if you [...]

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