October 2, 2011 | Written by: Luis Perez Ballestero
Categorized: Industry Insights
One of the issues that are
facing consumer products companies is how to manage raw materials volatility as
they are seeing commodities like sugar, wheat, corn or soy beans increased
prices between 20 and 70 % year-on-year
This is particularly critical
in companies with complex supply chains with many partners involved and global
operations as price volatility varies among markets.
What we find is that the issue
is not only volatility itself, as price changes may be partly transferred to
product price, but how CPG companies can build flexible supply chains that can
react quickly to these changes, predict changes in demand and be responsive
allocating the right inventory at the different supply chain partners. IBM has
developed a set of solutions to improve Visibility as a means to build Smarter
Food Supply Chains.