Commodity Risk Management Content

Last week, I represented the Spend Matters analyst team at EcoVadis’ Sustain 2019 customer event in Paris. In between lessons on sustainable supply chains, vendor CSR ratings and French labor unions I never knew existed — thank goodness for British Airways when the Eurostar shuts down because a handful of customs workers at Gare du Nord decided to protest Brexit by striking — I had the chance to learn about the latest enhancements to the EcoVadis platform.

In Part 1 of this Spend Matters PRO research series, we shared some of the most recent capabilities that EcoVadis has embedded in its sustainability and ratings supplier management platform. Today, we turn our attention to explaining how EcoVadis fits in the broader supplier management and risk solutions landscape. (Hint: It is a complement to other solutions, but not a replacement for them, at least not yet.)

We will conclude our series with a look at the EcoVadis solutions roadmap and landscape in the coming weeks with specific recommendations on what it means for current and future customers who are likely to also make investments in adjacent solution areas and need to think about the architectural “fit” of all these components together. But to answer that question, we first need to explore where EcoVadis sits today in the broader supplier management and supply/supply chain risk management technology and solutions universe?

This Spend Matters PRO research brief provides insight into all of the components that comprise the supplier management and supplier/supply chain risk management sectors. It then attempts to place EcoVadis, a sustainability and CSR specialist in vendor ratings and management, in the context of these two highly complex solutions markets. Our analysis includes detailed functional and requirements for each of these solution types.

Spend Matters welcomes this guest post from Jason Middleton, Ray Products vice president of sales and development.

Our trade deficit with China surpassed $301 billion in 2018 — and it’s no mystery why. Thanks to cheap labor and fewer regulations there, it tends to be more cost-effective to have “Made in China” stamped on your product than it is to have “Made in America.”

In the last year, however, the trade war has prompted many companies to re-evaluate their outsourcing practices and consider a “maker-to-user” model of sourcing locally. With the U.S. imposing approximately $250 billion in tariffs on Chinese imports, it’s simply no longer cost-effective to source products and materials from China.

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, our MetalMiner editors scour the landscape for what matters. Here's what mattered this week.

An October 2018 study released by a watchdog group that focuses on Africa has highlighted concerns that gold mined from conflict areas in the Democratic Republic of Congo (DRC) is making its way into international markets and becoming integrated in the supply chains of major U.S. companies. Documents reviewed and interviews carried out by The Sentry, a team of policy experts and financial auditors co-founded by George Clooney, raise concerns that the corporate network controlled by Belgian tycoon Alain Goetz, director at the Belgian gold refinery Tony Goetz N.V., has refined illegally smuggled conflict gold from eastern DRC at the African Gold Refinery (AGR) in Uganda and subsequently exported it through a series of companies to the U.S. and Europe. The study lists companies like Amazon, General Electric and Sony as possibly being ones that conflict gold may have been sold to.

In the first installment of this series, I introduced six distinct platform areas that manufacturers are making investments in as part of core efforts to drive more successful savings, efficiency, compliance, collaboration and supplier engagement programs. The first, design/engineering and sourcing enablement solutions, represents a new class of direct materials e-sourcing toolsets that attempt to accomplish numerous objectives. Why are all of these areas so essential, especially in concert together? This Spend Matters Plus analysis examines why.

If your company sources and buys gold, then the message from some recent research is loud and clear: Watch your step in South America. The market there and its role in the global gold supply chain is a tremendous cause for corporate concern, according to a Thomson Reuters white paper. Evidently, the promise of huge profits based on higher gold prices — and fueled by rampant corruption — have created a vast supply chain problem on the continent.

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, our MetalMiner editors scour the landscape for what mattered this week.

Editor’s note: This is part of the Ask Spend Matters series, where readers send in their burning questions about procurement and supply chain.

While going through questions that our readers have sent us, we came across one regarding how and where procurement practitioners can find savings when commodity prices are going up. The reader, a senior procurement manager, had noted that procurement’s primary task of finding savings is becoming difficult. This is an ever-relevant topic, and we enlisted the expertise of Stuart Burns, editor-at-large at MetalMiner, in coming up with some concrete tips for other procurement professionals facing this challenge. Read on!

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, our MetalMiner editors scour the landscape for what mattered this week.

The escalating U.S.-China trade war has put billions of dollars of Chinese imports under tariffs — but thousands of Chinese products are about to fall under additional duties. Off the back of the Trump administration's Section 232 investigation, which resulted in steel and aluminum tariffs, the recently finalized Section 301 investigation has targeted numerous Chinese products. Many procurement organizations have been following the investigation and its potential effects on their supply chains, but knowing exactly how a decision could introduce risk on a part, supplier and regional level has been far from easy. To shield their businesses from uncertain trade risks, procurement organizations need to take a proactive approach.

There was one word that loomed over the proceedings at The Right Place/Supply Chain Management Council's Commodity Trends 2019 Outlook event Wednesday in Grand Rapids, Michigan: Tariffs. From the multiple expert presentations to numerous audience questions and comments on the topic, it didn’t take much to pinpoint the effects of tariffs as a recurring theme of the half-day conference, at which MetalMiner Executive Editor Lisa Reisman presented our 2019 metals outlook. Indeed, the current onslaught of tariffs — including those implemented under Sections 201, 232 and 301 of U.S. trade law — seemed to be one of the primary concerns on everyone’s minds.

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, our MetalMiner editors scour the landscape for what mattered this week.