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, [...]

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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 [...]

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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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