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 | Jan 2021

Ep 31 Inside Procurement: Commodity Risk Management | Stages of Maturity (Pt 3)

In the 3rd and final video of this series on Commodity Risk Management, Omer Abdullah discusses the stage of progressive risk management characterised by organisations who have embedded a range of strategies for managing commodity risk exposure. The most common of which is the use of financial instruments to manage residual commodity exposure. 

As we close off this video series, here are a few questions to ask yourself –

  1. Is it easy for your business to pass on commodity price increases to our customers? If not, then you need to be thoughtful and strategic in how you assess and analyse commodity risk.
  2. What is your cash flow situation – and what does management expect from you from a cost savings perspective? 
  3. Is there a strong underlying objective of cost containment or is it more to do with cost reductions?
  4. Can you incorporate commodity intelligence to influence your commercial and operational strategies? 

In case you missed parts 1 and 2 of this series, click on the links below to watch:

  1. Ep 29 Inside Procurement: Commodity Risk Management | Stages of Maturity (Pt 1)
  2. Ep 30 Inside Procurement: Commodity Risk Management | Stages of Maturity (Pt 2)

 

  • Omer Abdullah

    Omer is a co-founder of The Smart Cube and leads the firm’s business across The Americas. He works with Procurement and Strategy leaders at global organisations, transforming their teams to become value-driven and insight-led. Omer has more than 30 years of management consulting, global corporate and industry experience across North America, Europe and Asia. His prior roles include A.T. Kearney (North America), Warner Lambert (USA) and The Perrier Group (Asia-Pacific). Omer has an MBA from the University of Michigan at Ann Arbor, USA, and a BBA from the University of East Asia.