Commodity Specific Knowledge


Commodity Specific Knowledge is when procurement has a sound understanding of the global, economic, exchange factors affecting the commodity and also the suppliers available and cost drivers. A commodity is one which there is no qualitative differentiation across a market. Some examples include grains, petroleum, aluminium, copper, gold, beef, salt, sugar, tea, coffee, oil and natural gas.

The price of a commodity is often down to its market as a whole where supply and demand fluctuates. Category specific knowledge will determine the correct strategy to adopt, be it a spot or futures contract based on in depth knowledge and analysis.

CIPS Procurement Topics

Related news

More targeted training and support for procurement teams in the oil and gas industry

Date: Monday, June 30, 2014

Over 90 individuals and 30 organisations involved so far

Continue reading

UK service sector growth sustained at considerable pace

Date: Wednesday, December 04, 2013

Activity and new business both continue to rise at historically sharp rates.

Continue reading

Construction output rises at fastest pace since August 2007

Date: Tuesday, December 03, 2013

Overall business activity rises for seventh month in a row

Continue reading

Related concepts

Commodity Strategies

[Commodity strategy] ... should be proportionate to the value, complexity and strategic importance of the commodity (The Scottish Government).

Find out more