Raw Material Management

Raw materials are no longer a transactional issue. Volatile commodity prices, tariffs, and trade risks have made procurement a boardroom priority. Leading companies know that resilience in raw material management is not reactive — it must be designed into sourcing, pricing, and governance.

Turning Raw Material Risks into Strategic Advantage

Secure Resilient Access to Critical Materials

Ensure continuity of supply in a volatile environment where commodity risks and policy shifts are reshaping global markets.

Master Complexity in Tariffs and Trade Risks

Turn policy volatility into a strategic advantage by anticipating and adapting to global trade barriers.

Protect Profitability While Building Resilience

Balance cost optimization with risk mitigation to safeguard margins and secure long-term competitiveness.

New Insight: Read our White Paper

Rethinking Raw Material Management – Tariffs, Trade Risk & the New Resilience Code for Smarter Sourcing

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Global supply chains face structural, not temporary, disruption. Procurement leaders are expected to anticipate tariff impacts, comply with ESG regulations, and mitigate systemic supply fragility. Many organizations recognize the challenge but struggle to execute consistently — leaving cost exposure and supply security at risk.

How We Advise on Raw Material Procurement?

At Inverto, we help clients design resilient raw material strategies that deliver both security of supply and financial stability. Our methodology includes:

We support clients in transforming sourcing strategies beyond resilience. By implementing dual or multi-sourcing models, organizations can not only mitigate risks but also foster competitive tension among suppliers, driving price advantages. Where appropriate, we consolidate supply bases to enable volume bundling and enhance negotiation power. Additionally, we help clients evaluate nearshoring and friendshoring options using Total Cost of Ownership (TCO) analyses — balancing logistics, tariffs, and working capital to achieve the lowest total landed cost.

Our expertise includes unlocking savings at the design level. We drive material substitution initiatives, identifying cost-effective alternatives without compromising performance. Using design-to-cost principles, we enable simplification, standardization, and modularization to reduce both material and production complexity. Furthermore, we support demand reduction by integrating lightweighting techniques, optimizing yield, and improving recycling ratios — all of which lower raw material intensity.

To manage price volatility, we guide clients in structuring index-linked contracts that ensure transparency and guard against unfair price pass-throughs. Where appropriate, we incorporate hedging strategies using financial instruments such as futures or options to stabilize cost baselines. Should-cost models, another key element, serve as robust fact bases for supplier negotiations — making cost drivers visible and discussions more objective.

Risk mitigation is not just about continuity; it’s a direct cost lever. We help clients design ex-ante mitigation strategies to prevent cost explosions during market shortages. By diversifying geopolitical exposure, organizations can reduce risk premiums in global supply chains. Our proprietary tools, such as the Volatility Manager, empower businesses to systematically manage price fluctuations and reduce exposure to unplanned costs.

In today’s complex trade landscape, we ensure that tariff and customs strategies are optimized. Through our Tariff Simulator and other digital tools, we identify levers such as duty drawback, Free Trade Agreements (FTAs), and HS-code optimization. This governance ensures compliance while unlocking financial benefits hidden in the egulatory framework.

Finally, we foster collaboration to drive sustainable cost savings. This includes joint productivity programs with suppliers to streamline processes, open-book costing to uncover true cost structures, and even co-investments in cost-efficient technologies or closed-loop recycling. These partnerships create long-term value and reinforce strategic supplier relationships.