Commodity Market Volatility: Causes and Strategies for Mitigation

Commodities are high-value, business-critical products that are prone to large price volatility. Companies are moving away from just-in-time (JIT) supply strategies and toward buffer stock that takes supply interruption risk into account. The epidemic served as a sharp reminder of the interdependence between suppliers and procurement. Buyers must use their supplier network to adjust to this unstable climate because the commodity market is uncertain.