4 Essential Tools for Better Procurement Decisions

Making the best procurement decisions can be difficult. You need to evaluate budgeted spending, actual spending, projected spending and coverage across the organization to make the best choices. It’s also risky. An estimated 40 to 60 percent of manufacturing costs are related to raw material costs, so procuring resources at the wrong price significantly impacts profits.  Today, manufacturers face more challenges securing commodities than ever before. Increased pricing complexity and volatility impacting both direct and indirect exposure drive risk and uncertainty. Shifting markets – including increased global demand, acquisitions, and expanding networks of global suppliers – drive more FX exposure, complicated hedging strategies, and more stringent regulatory and risk policies. Constantly shifting political climates, trade wars, and political uncertainty complicate things further. Manufacturers must find a more efficient and effective way to manage their portfolios, reduce market risk and increase margins. Source: EKA – 4 Essential Tools for Better Procurement Decisions

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Source: CTRM Center

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