Gartner Research

Key Considerations for Managing Commodities in Your Supply Chain

Published: 19 February 2014

ID: G00260744

Analyst(s): Paul Lord

Summary

Competitive and volatile margins associated with the term "commodity" create concern for marketing and finance leaders. Supply chain leaders can use these four insights to create value by embracing challenges and leveraging opportunities with commodities.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Commodity products have tangible market value, which supply chain leaders can quickly interchange with cash
  • Each commodity supply network has its own set of constraints and interdependencies that supply chain leaders must analyze and mitigate
  • Cost competitiveness of commodity supply networks impacts how supply chain leaders define operating strategy
  • Commodities require supply chain leaders to balance complex trade-offs for maximum asset profitability

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