Take Advantage of Commodity Volatility to Increase Profits

Flowandebb12 Dec, 2018Business

Commodity markets are volatile. The price risk this creates has the power to significantly affect gross margins and profits. Left unchecked it will lead to instability, uncertainty and ultimate nasty shocks. In response, many businesses rely on their suppliers to carry this price risk for them, through contractual mechanisms such as fixed-price, fixed-term contracts.