Raw material shortages and price escalations are compelling reasons for organizations to have sourcing strategies documented in commodity business plans (CBP).
When purchasing high volume spend items or services, many best-in-class-companies develop plans which offer a short and long term strategies for controlling costs and mitigating risks.
A plan identifies applicable suppliers and analyzes the supply market using industry frameworks such as Porter’s Five Forces. It examines an item/service’s cost structures supply and demand and identifies current and potential price drivers. It will also determines the risks that might impact an item/service’s cost, availability and quality and offer solutions for monitoring and managing them.
This Guide and additional resources in CANVAS provide some information resources required for developing such a plan:
Difficult to locate Information on over twenty raw materials is available by contacting the TO 624 librarian.
For further assignment guidance, refer to the Final Project's guidelines on the CANVAS site. Contact the TO 624 Consulting Librarians for a research consultation to review available resources.
Danguole "Dee" Kviklys (dkviklys@umich.edu)
Mary Catherine Moeller (mcmoelle@umich.edu)
