Reactive rather than proactive to Commodities price changes.
Volatile commodity prices can erode margins, disrupt budgets, and force reactive price changes to customers.
Many companies react only after prices have moved, and in many cases depend entirely on their suppliers for market information.
Other companies don’t trust brokers or suppliers to provide independent advice.
Lacking knowledge of how Commodities markets move.
Many procurement teams don’t fully understand commodity markets, hedging, or currency exposure the way a trading-side advisor does.
Firms will reactively buy commodities without fully understanding market dynamics, and ultimately market direction. They really need senior commodity expertise, but for only a few days a month.
Data gaps
High cost of employing someone fulltime, or Consultancy fees.
A lot of firms cannot justify employing a senior commodity consultant full-time.
Many firms we speak to cannot justify a full-time commodity manager, so they might try to engage with the larger Consultancy firms.
However, what they really want is practical recommendations rather than long consulting reports, and quickly find out that paying exorbitant Consultancy fees still results in them working with junior consulting staff, with limited experience.
All of our advisors have held Senior Commodity Trading, Risk, and Purchasing positions in their chosen fields.