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.
Over 90 individuals and 30 organisations involved so far
Activity and new business both continue to rise at historically sharp rates.
Overall business activity rises for seventh month in a row
[Commodity strategy] ... should be proportionate to the value, complexity and strategic importance of the commodity (The Scottish Government).
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