Mastering Cost Control with Inverto’s Volatility Manager

In a world that faces constant macroeconomic challenges, it’s increasingly difficult to estimate how market developments will impact on product cost factors, and portfolios as a whole.

Containing cost volatility in the bottom line has become an ongoing task for procurement teams – an obligation that puts additional pressure on them.

They need an efficient and reliable solution – one that helps procurement professionals make forecasts, define realistic targets and devise tailored procurement strategies
The Inverto Volatility Manager makes it possible to manage your categories proactively.

The tool supports two key teams in a coherent way:

• On the one hand, the Inverto Volatility Manager serves the tactical requirements of category managers.
• And, on the other hand, the tool also supports the strategic needs of CFOs and CPOs in steering portfolios.

In general, the Inverto Volatility Manager analyzes the direct cost factors of your product, such as raw materials. And it also takes indirect cost factors into account – for instance country-specific energy, or labor-cost development.

Inverto Volatility Manager then evaluates the total impact at both component and portfolio level.

The key objective for category managers is to control the development of product costs. Cost increases should, ideally, be avoided, and spend decreases maximized. Both objectives require different strategies.

The Inverto Volatility Manager analyses and forecasts what we call “market impacts” – the concrete effect of macroeconomic developments on your suppliers’ bottom-lines.

And transparency is essential in identifying the right strategy – that’s where Inverto Volatility Manager comes into play.

Inverto Volatility Manager combines the best of two worlds: highly granular, bottom-up cost transparency, and forward-looking market intelligence.

With its detailed analytics, procurement professionals can enter negotiations knowing exactly where the headwinds and windfalls lie. Inverto Volatility Manager’s robust methodology and fact-based paradigm empowers its users to lead their negotiations with confidence and precision.

Inverto Volatility Manager is designed for CPOs, CFOs and category managers, alike , to understand supplier- and category-level price dynamics.

The tool consolidates complex, product-level data into a comprehensive report and dashboard view. It helps upper management to set actionable targets for the procurement function as a whole.

Inverto Volatility Manager employs ONE coherent methodology for deriving both individual negotiation targets, and overall portfolio-level performance goals. That seamless integration is key for establishing overall strategic direction.

Inverto Volatility Manager combines detailed bottom-up analytics with top-down transparency, giving your procurement team the edge as it navigates today’s volatile market environments.