Unlocking Strategic Sourcing Advantage through Commodity Cost Insights

Client Background 

The client is a multinational industrial chemicals company that relies on a wide mix of raw materials sourced from multiple global suppliers. Because these inputs are highly cost-sensitive and directly tied to product margins, the company’s procurement team must closely monitor commodity trends to plan sourcing cycles and manage supplier negotiations. 

Client’s Challenge 

The client had access to broad commodity indices but lacked the detailed, material-specific intelligence required for actionable sourcing decisions. They needed supplier-level visibility, region-specific cost exposure analysis, and scenario-based pricing forecasts to anticipate volatility. Without these inputs, sourcing choices risked being reactive and misaligned with market conditions. Mordor Intelligence was engaged to deliver a customized commodity cost outlook aligned with the client’s procurement timelines. 

How Mordor Intelligence Helped 

• Historical Price Trend Analysis: Reviewed five years of price movements and volatility patterns for selected raw materials and feedstocks to establish a strong baseline.
• Expert and Supplier Consultations: Conducted interviews with suppliers, sourcing leads, and industry specialists to uncover production constraints, margin pressure points, and expected near-term market behavior.
• Regional Price Exposure Mapping: Analyzed how price risks varied by geography, highlighting structural vulnerabilities in certain sourcing regions.
• Scenario-Based Cost Forecasting: Developed sensitivity models to project how raw material prices could shift under different supply, demand, and feedstock conditions.
• Procurement-Aligned Output Delivery: Customized deliverables to integrate directly into the client’s annual category planning and supplier review cycles. 

Key Findings 

• Several key raw materials showed near-term price pressures due to tightening supply.
• Supplier risk exposure varied widely across regions, revealing hidden vulnerabilities.
• Margin compression downstream was linked directly to raw material cost spikes.
• New supplier options surfaced in lower-risk markets, offering diversification potential. 

Our Industry Coverage 

Mordor Intelligence supports commodity-exposed companies across industries. 
Our capabilities include: 

• Supplier benchmarking and vendor renegotiation strategies.
• Sourcing strategy adjustments in volatile pricing environments.
• Strategic intelligence for investment teams evaluating material-exposed products.
• Early warning frameworks for detecting input cost risks across portfolios.

Each project is structured around the client’s material mix, supply relationships, and decision cycles to ensure relevance and immediate usability.