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Manufacturing companies, specifically in process industries, are prone to the Raw Material pricing volatility. Manufacturing growth and Raw Material demand in Asia, subdued growth in Europe and North America, diminishing Raw Material Supply sources, and unfavorable logistics conditions are increasing the Raw Material prices globally.

In 2008, Raw Material prices touched all-time high. The difference between the high and low prices was almost 40% in 2005 and whopping 163% in 2008. Such Raw Material price volatility can be managed effectively with strategic Raw Material Management.

Raw Material Management has become crucial to the survival of manufacturing companies, as the company's bottom line was affected due to large input pricing volatility. Managing Raw Material effectively provides benefits like increased security of supply, improvement in supply chain operations, and earnings growth by 2 to 5% annually.

This presentation outlines a 4-phased approach to Raw Material Management. Raw Material Management helps in effectively managing external and internal factors that favor how Raw Materials are transformed into the finished product. Raw Materials Management practices ensure price reliability and can build a significant Competitive Advantage.

This deck also contains slide templates for you to use in your own business presentations.

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Source: Raw Material Management PowerPoint document

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Raw Material Management

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This business document is categorized under:

Business Framework Primers

File Type: PowerPoint (ppt)

Tag(s): Procurement Raw Materials

Number of Slides: 20 (includes cover, transition slides)

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Upload date (first version): Jan 24, 2018

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