Managing Commodity Price Risk—Direct Commodity Purchases

Every business is exposed to financial risk stemming from commodity price volatility. Risk exposure may be direct from the prices paid for raw materials needed for operations, or indirect from higher energy and transportation costs. The purpose of this book is to provide an approach that organizations can implement to manage commodity price volatility and reduce their exposure to financial risk. This topic is important for current and future supply chain professionals due to the significant direct financial effects that price volatility has on profitability, organizational cash flow, the ability to competitively price products, new product design, buyer-supplier relationships, and negotiating, to name a few