Effective Commodity Management
A source of competitive advantage
Deloitte initiated a commodity management study to answer two questions:
- How much has commodity volatility impacted businesses?
- Which commodity management practices truly support a competitive advantage?
More than 40 companies across multiple manufacturing and consumer industries participated, yielding some very telling insights: Companies with effective commodity management practices outperform the commodity markets and have a higher likelihood of not reporting earnings surprises or warnings.
There are three fundamental keys to effective commodity management:
- A tailored mix of strategies and tools to manage commodities;
- A good forward view of commodity prices; and
- A category management organizational structure that supports cross-commodity and cross-functional collaboration and risk management.
To learn the top 10 best practices in commodity management and how to apply them at your company, download the paper below entitled "Effective Commodity Management: A source of competitive advantage."
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.