This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Raw Material Management PPT: Download strategic sourcing and procurement templates to manage price volatility, supply risks, and optimize manufacturing operations. Raw Material Management is a 20-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
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.
This PPT delves into the critical aspects of Raw Material Management, emphasizing the importance of separating market myths from truths to develop effective strategies. It provides a comprehensive guide on managing large-scale raw material requirements, addressing key factors such as supply chain transparency, demand fluctuations, and strategic procurement.
The presentation also highlights the necessity of a structured approach, outlining a 4-phased methodology that includes defining a strategic agenda, establishing supply chain transparency, managing raw material risk, and creating strategic organizational processes. This ensures that manufacturing companies can mitigate risks, optimize supply chain operations, and achieve a competitive edge in the market.
This PPT slide outlines 5 key procurement strategies for managing raw material risk:
1. Strategically define the deal - Structure procurement agreements to optimize input costs by understanding market dynamics.
2. Foster strategic alliances - Build long-term relationships with key suppliers to secure stable contracts and lower costs.
3. Build up the supplier base - Develop relationships with new suppliers to enhance bargaining power and reduce dependency, ensuring supply security.
4. Integrate vertically - Consider backward integration by acquiring or merging with suppliers to gain control over raw material sources.
5. Redefine demand - Adjust product design and production processes to minimize reliance on scarce raw materials, reducing risk exposure and managing price fluctuations.
These strategies emphasize a holistic approach to raw material management, enhancing procurement resilience.
The Raw Material Strategic Agenda is influenced by a manufacturing company's overall business strategy and market conditions, primarily driven by its growth plan. Raw material supply security is critical, especially regarding price volatility, necessitating proactive supply chain management to mitigate risks. The competitive landscape, including competitors' backward integration strategies, impacts raw material sourcing approaches. Evolving raw material requirements from new product developments demand agility and responsiveness from manufacturers. Environmental concerns and other risks highlight the need for strategic supply and demand management. Sustainable resource development is essential, urging manufacturers to invest in technologies that address current and future challenges. Managing raw material volatility requires a comprehensive approach to navigate market complexities effectively.
This PPT slide outlines 3 fundamental forces influencing raw material price volatility: Supply Situation, Demand Situation, and Key Input. The Supply Situation includes factors such as current supply capacity, import/export flows, and inventory levels at manufacturing sites, which buffer against disruptions. The Demand Situation highlights major economic activities and investments in the region as key demand drivers, noting that demand can shift due to lower-priced substitutes. The Key Input section addresses manufacturing capacity, transport capabilities, and the impact of natural disasters on supply chains. These elements are critical for organizations to navigate raw material pricing and inform sourcing and inventory management decisions.
This PPT slide outlines a four-phased approach to Raw Material Management in manufacturing. The first phase, "Define a Strategic Raw Material Agenda," sets clear objectives for raw material acquisition, aligning strategies with operational goals. The second phase, "Establish Supply Chain and Raw Material Transparency," emphasizes the importance of a transparent supply chain for effective sourcing and procurement. The third phase, "Manage Raw Material Risk," focuses on identifying and mitigating risks associated with raw material sourcing to prevent supply disruptions. The final phase, "Create Strategic Organization and Processes," develops the necessary organizational structure and processes to support raw material management. This comprehensive strategy enhances operational efficiency, reduces costs, and mitigates risks related to price volatility.
Source: Best Practices in Procurement, Raw Materials PowerPoint Slides: Raw Material Management PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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