- Impact of declining sales and high commodity prices on businesses in 2024: Following a period of price stabilization in the commodity and energy markets, companies are now bracing for a resurgence in price hikes.
- Companies have implemented measures to cope with volatile prices: Index-based pricing agreements with suppliers are the most commonly applied measure. Projects aimed at reducing material usage have seen the largest growth.
- Price and supply issues vary by region and shape commodity management: While price escalation clauses are predominant in the DACH region and the UK, France and Spain are increasingly adopting long-term fixed-price agreements, including components for commodity costs.
- Geopolitical risks continue to drive uncertainty in commodity sourcing: In response, 57% of companies have adjusted their procurement strategies in the last 12 months, with an additional 29% currently planning or implementing changes. France leads the way in these adaptations.
- Participants are increasingly relying on digital tools: Digital solutions have become the “new normal” in Raw Material Management, with positive effects on costs, transparency, and resilience. The priorities for tool usage vary depending on industry and company size, while data quality and availability remain challenging.
2024 Raw Materials Study Results: Insights on commodity procurement and Raw Material Management
We have gathered insights from over 200 European business and procurement leaders across various industries regarding their current approaches to commodity management. The findings are clear: declining sales volumes and rising commodity prices still place significant pressure on companies in 2024. Regional differences in strategies for dealing with price increases and supply chain challenges are evident.
Transparency and efficiency in Raw Material Management
Despite a slight easing of the commodity markets last year, rising prices and geopolitical risks remain key issues for companies. This study provides insights into the strategies companies are using to prepare for volatile markets and shows how digital tools and an adapted sourcing strategy can help secure competitiveness.
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