NEW YORK, Sept. 28, 2023 /PRNewswire/ — Our client, a leading supplier of fertilizer products with operations across North America and Europe, faced significant challenges due to commodity price swings and supply chain disruptions. The company’s product lines, including liquid fertilizers and anhydrous ammonia, relied heavily on gas supplies, making them vulnerable to inflation and geopolitical events. The client approached SpendEdge for assistance in gaining deeper insights into commodity price trends, particularly in the chemical industry, to enhance planning and decision-making.
Client Overview: Our client is a prominent fertilizer supplier with operations in North America and Europe, serving agricultural markets.
Challenges:
Commodity Price Volatility: Price swings in feedstocks and key input materials affected the client’s profitability and supply chain stability.
Lack of Supply-Side Visibility: Inadequate visibility into supply-side data hindered decision-making and supply chain management.
Solutions Offered:
SpendEdge developed a comprehensive solution to address these challenges:
Price Forecasting: Our experts continuously tracked and reported price changes for a range of fertilizers, differentiating between high-risk and low-risk categories. Price forecasts for medium and long timeframes (quarterly, half-yearly, yearly) were provided.
Commodity Price Forecasting Frameworks: Leveraging deep learning algorithms, our frameworks allowed users to filter results by regions, specifications, and grade.
Risk Management Strategies: Our client implemented hedging as a risk management strategy to mitigate losses from price swings in the chemical industry.
Results Achieved:
Our strategic solution delivered tangible results for our client:
- Secured Future Prices: With improved visibility and the implementation of hedging strategies, the client successfully secured future prices while containing losses.
- Reduced Supply Chain Disruptions: Countervailing measures and informed decision-making significantly reduced the likelihood of supply chain disruptions.
- Enhanced Profitability: By taming commodity price volatility, the client improved profitability and ensured supply chain stability.
In conclusion, SpendEdge’s strategic solution empowered our client to navigate commodity price volatility in the fertilizer industry effectively. By implementing hedging and leveraging deep insights into price trends, the client secured its supply chain and enhanced profitability.
For more information on how SpendEdge can assist in managing commodity price volatility, click here.
About SpendEdge: SpendEdge is a global leader in procurement market intelligence solutions and advisory services. With nearly two decades of experience, we have helped organizations across industries achieve supply chain excellence and drive profitability.
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