6 November 2015
Three ways to reduce the risk of NF metal price volatilityWritten by Marijn Schouten
The costs of the conducting materials, such as copper and aluminum often represent over 80 percent of the value of a finished cable. Moreover, the prices of non-ferrous metals are highly volatile. Therefore managing the risk of price changes is essential. InnoVites CableERP offers three ways to help you manage and reduce risks related to NF metal price volatility.
1. Protect your sales margins by adjusting sales prices instantly
InnoVites CableERP helps cable manufacturers to protect themselves against risks of raw material price changes. It protects the margin of sales order lines, by adjusting sales prices of the cable, based on the actual copper price at e.g. the LME, the Comex the DEL or any other commodity market.
2. Reduce the risk of price changes between order and delivery
InnoVites CableERP supports hedging strategies, and validates the conditions of the hedge contract against the actual deliveries to the customer. In this way the risk of price changes between the moment of selling and the moment of delivery is minimized.
3. Easily update price lists after price revisions
InnoVites CableERP enables mass update of price lists, based on revised prices of materials such as copper, eliminating the labor-intensive and error-prone activity of manual adjustments.
We at InnoVites do our utmost to make Wire & Cable manufacturers and distributors more competitive and successful. How can we help you? Let us know by contacting us.