Adapting to market volatility: dynamic product-cost models in procurement processes

In a world where the only constant is change, the role of Chief Procurement Officers (CPOs) has become increasingly challenging.

The global business landscape, shaken by events such as wars, climate change, and political unrest, is more volatile than ever. This volatility is reflected in large swings in input factor costs such as energy, labor, industrial and food commodities necessitating rapid adaptation on the go. CPOs must transform regular planning and forecasting into agile, adaptive tools capable of responding swiftly and effectively to ever-changing market conditions. 

The modern CPO grapples with a lack of cost transparency, making it difficult to predict and understand the fluctuating costs of commodities impacting their supply chains. Their role has evolved beyond traditional responsibilities, now requiring them to steer their companies through turbulent times.

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