Managing volatility in raw materials procurement



Dear Readers,

In a world increasingly shaken by geopolitical risks, blocked supply chains, and a strong dependence on critical raw materials, companies must rethink their raw material procurement strategies.

The European Union and national governments respond decisively with initiatives like the Carbon Border Adjustment Mechanism or Critical Raw Materials Act, demonstrating that strategic raw material management is no longer an option but an absolute necessity for businesses.

In our cover story, we introduce innovative approaches to diversifying raw material supply chains and increasing resilience. Additionally, we provide an overview of the advantages and challenges associated with nearshoring and friendshoring.

For critical raw materials in particular, companies should never be dependent on just one supplier if at all possible.

An advanced strategy game

Supply chain bottlenecks and geopolitical crises have shown just how important raw material procurement is to companies. A growing number of decision-makers are realizing that it represents a key element of any corporate strategy.

When the supplier can no longer deliver due to changed conditions, a purely cost-based raw material strategy no longer helps.

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