It looks like you're using Internet Explorer 11 or older. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. If you continue with this browser, you may see unexpected results.
TO 624 Strategic Sourcing: Commodity & Material Prices
Technology and Operations TO 624 course library & information resources
Products are made from raw materials whose prices can fluctuate daily. One of the responsibilities of a supply chain professional is to identify product cost drivers and determine how to address price changes.
Price benchmark information is also used in contract negotiations and establishing favorable prices. Contracts sometimes included price escalation clauses which are tied to market exchanges or fee-based price reporting sources.
Price information is mostly available for raw materials or commodities where standard specifications have been established and there is little variance in their production process. Examples include commodities in base metals, agriculture, energy, pulp and paper, certain steel forms and grades, plastic resins, fertilizers and other chemicals
Prices for finished goods are usually not publicly available and are confidential because they are determined by factors such as the degree of customization and volume purchased. These prices can only be obtained through the RFQ (request for quote) or bidding process. A few examples of finished goods are fasteners, adhesives, electronic enclosures, corrugated boxes, and equipment.
Major world commodity exchanges such as LME, ICE, CME-NYMEX, and SHFE
Price benchmark assessments provided by fee-based specialized price reporting agencies (PRAs) or special industry publications.
Real time spot and forecast price information require subscriptions. Exchanges allow access to same day, real time price transactions only through their approved vendors such as Bloomberg, Metal Bulletin, and others.
Forecasters charge for their analysis; Information providers for collecting and analyzing the data.
In the U.S., government agencies such as the EIA and USDA provide some recent price assessments and forecasts for energy and some agricultural commodities. Price publishing for certain sectors can also be delayed by weeks or months
Trade associations are good sources for supply and demand statistics but very rarely provide prices
Recent or real time prices for the following select commodities and finished goods are available through the following Kresge Library, government and organization resources
Consult the Librarian for price information not listed
Comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. Explains how prices are set in areas such as electricity, transportation, health and advertising