Struggling with Price Volatility?
As a Procurement Manager, you know that e.g. steel prices can fluctuate by up to 6% per month. This volatility leads to:
Budgeting Difficulties
Predicting costs becomes nearly impossible, making financial planning a complex task.
Non-Ideal Contract Forms
Finding the right contract in a volatile market is tough. Long-term fixed-price contracts may seem secure but can lead to overpaying when prices drop. On the other hand, overly flexible contracts may not provide the stability needed for budgeting and supplier commitments.