Highlight and manage the impact of market volatility on your product components and portfolios

Recent and significant market volatility has put additional pressure on procurement functions. Price fluctuations – whether inflation or deflation – are making it increasingly difficult to estimate the development of product costs. So, how would you like a tool that helps you make forecasts and define realistic procurement targets? A foundation for enhancing your negotiation strategies with suppliers?

The INVERTO Volatility Manager (IVM), is an indispensable tool for managing procurement cost volatility. It analyzes direct (raw materials) and indirect cost factors (e.g. energy, labor costs, etc). It then evaluates their impact on both component and portfolio level, while also taking country specifics into account.

IVM equips your procurement professionals with the ability to analyze and forecast market impacts, based on macroeconomic developments, and then tailor their procurement strategies accordingly. There are comprehensive dashboards to serve the needs of Procurement Managers, Category Managers, CPOs and CFOs, all at a simple click of a mouse.

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The INVERTO Volatility Manager Tool combines two dimensions

  • Product-Cost Breakdown including the share of the factor costs within the product
  • Development of individual factor costs, like energy prices, raw material prices, labour costs, and so on.

 

Key Features of the INVERTO Volatility Manager:

  • Dynamic Cost Analysis: IVM provides a detailed breakdown of procurement costs, distinguishing between volatile and non-volatile components. Understand how energy prices, raw material costs, labor and transport influence your procurement expenses, and use that data to anticipate changes.
  • Market Impact Forecasting: Stay ahead of market trends with IVM’s dynamic forecasting. Whether it’s a spike in energy costs or a drop in raw material prices, IVM prepares you for upcoming changes and helps you adjust your negotiation strategies effectively.
  • Strategic Negotiation Preparation: With detailed analytics at your fingertips, enter negotiations knowing exactly where the headwinds and windfalls lie. IVM’s robust methodology and fact-based structure empower you to lead negotiations with confidence and precision.
  • Portfolio Overview: Gain a comprehensive view of your procurement portfolio. IVM enables you to assess each category and supplier, integrating individual assessments into a broader strategic framework. This top-down view ensures you’re prepared for discussions at the executive level, focusing on where savings can be realized.

Why Choose IVM?

Unlock the power of data-driven procurement with the INVERTO Volatility Manager and transform the way you manage your products and portfolios.

  • Tailored Insights

    Customize the data according to your specific products and needs. IVM adapts to your unique organizational context, delivering relevant and actionable insights.

  • Real-time Adjustments

    React to market changes with agility. Update input data, such as price reference dates, and see immediate impacts on your cost structure to enable timely decision-making.

  • Holistic Integration

    Whether analyzing individual components or the entire portfolio, IVM’s coherent methodology blends detailed insights with overarching strategies. It’s an essential tool for CFOs, CPOs and category managers.

     

 

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You want to gain more insights on how the IVM functions? Then register here and we will send the specific demo video:

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Get in contact with our experts

Carl Punkenburg

Principal

contact@inverto.com Contact

Jan Mersmann

Principal

Jan.mersmann@inverto.com Contact