KGM Strategy Volatility Manager: a comprehensive video series

In a world that faces constant macroeconomic challenges, it’s increasingly difficult to estimate how market developments will impact on product cost factors, and portfolios as a whole.

Containing cost volatility in the bottom line has become an ongoing task for procurement teams – an obligation that puts additional pressure on them.

They need an efficient and reliable solution – one that helps procurement professionals make forecasts, define realistic targets and devise tailored procurement strategies
The KGM Strategy Volatility Manager makes it possible to manage your categories proactively.

The tool supports two key teams in a coherent way:

• On the one hand, the KGM Strategy Volatility Manager serves the tactical requirements of category managers.
• And, on the other hand, the tool also supports the strategic needs of CFOs and CPOs in steering portfolios.

In general, the KGM Strategy Volatility Manager analyzes the direct cost factors of your product, such as raw materials. And it also takes indirect cost factors into account – for instance country-specific energy, or labor-cost development.

KGM Strategy Volatility Manager then evaluates the total impact at both component and portfolio level.

The key objective for category managers is to control the development of product costs. Cost increases should, ideally, be avoided, and spend decreases maximized. Both objectives require different strategies.

The KGM Strategy Volatility Manager analyses and forecasts what we call “market impacts” – the concrete effect of macroeconomic developments on your suppliers’ bottom-lines.

And transparency is essential in identifying the right strategy – that’s where KGM Strategy Volatility Manager comes into play.

KGM Strategy Volatility Manager combines the best of two worlds: highly granular, bottom-up cost transparency, and forward-looking market intelligence.

With its detailed analytics, procurement professionals can enter negotiations knowing exactly where the headwinds and windfalls lie. KGM Strategy Volatility Manager’s robust methodology and fact-based paradigm empowers its users to lead their negotiations with confidence and precision.

KGM Strategy Volatility Manager is designed for CPOs, CFOs and category managers, alike , to understand supplier- and category-level price dynamics.

The tool consolidates complex, product-level data into a comprehensive report and dashboard view. It helps upper management to set actionable targets for the procurement function as a whole.

KGM Strategy Volatility Manager employs ONE coherent methodology for deriving both individual negotiation targets, and overall portfolio-level performance goals. That seamless integration is key for establishing overall strategic direction.

KGM Strategy Volatility Manager combines detailed bottom-up analytics with top-down transparency, giving your procurement team the edge as it navigates today’s volatile market environments.