INVERTO Raw Materials Study in cooperation with the trade journal Handelsblatt
Price and supply reliability in raw materials management
112 managing directors, board members and purchasing managers from companies in Germany, Austria, Switzerland and the UK participated in the study 2018. The results show that because of the current global political situation, tension over substantial price increases and supply problems have become a major factor in raw materials management.
Raw material buyers are concerned about protectionism and trade wars and apprehensive about the substantial impact these may have on prices as well as availability of raw materials. Despite these developments, most raw material buyers have not initiated adequate preventive measures.
Hedging is rarely used
Although raw material prices increase and stay volatile, hedging methods are only occasionally used by the participating companies. The reasoning behind – by their own admittance – is a lack in hedging knowledge and skills as well as the belief that there are no adequate hedging products for most raw materials. Yet, in the current insecure situation with imminent supply bottlenecks, hedging could offer more security in raw materials procurement.
Price and supply reliability dominate
Price and supply reliability dominate the current risk assessment – the impact of sales risks is not as prominent as preciously.
82 percent of participants are of the opinion that raw material prices will rise in the next 18 months. Raw material availability is also a top concern among those serveyed: where only 18 percent mentioned this issue in 2016, it has risen to 58 percent this year.
Download the e-book with the study results and recommendations for action:
- General influencing factors in raw materials management
- Price reliability and the impact of protectionisms and trade wars
- Recommendations for action
Please fill in the following form to receive the Raw Materials Study 2018: