Commodity price monitoring is unavoidable for businesses keen on optimizing prices to drive sales. Our COMET platform provides at-a-glance updates on commodity prices, with over “250 prices series” histories and forecasts.
Prediction accuracy can make or break a commodity trader’s dreams. Thanks to the directional accuracy of COMET’s forecasting framework, our clients are able to hedge themselves against inflation.
Generating price forecasts for limited durations is tricky but doable. Leveraging augmented AI, we generate reliable insights (92% absolute accuracy) that decision-makers can action with high confidence across even 90-day timeframes.
Metals and Minerals
Accuracy is the biggest casualty in price forecasting
There is skepticism about the validity of commodity price predictions premised solely on past events and to the exclusion of other variables.
A multivariate model can forecast outcomes better
Businesses hunger for best-in-class accuracy in their price forecasts with a range of possible variables factored in. Our forecasting framework is predicated on a multivariable model, besides historical trends of individual commodities and curated database. As a result, our clients benefit from a continuous stream of precise competitive market insights.
In the medium-to-long-term, prices tend to defy predictions
Many commodity trackers get their short-term forecasts right, but predictions for longer timeframes are almost always off the mark, miffing users.
The short answer is “Maximize your data on price-drivers”
Making accurate price estimates for the longer term is entirely feasible so long as the forecasting engine is using broad-based data, covering the swathe of factors that drive commodity prices. Our COMET platform draws on price data for over “250 price series” histories and forecasts, providing maximum insight into price-driving factors.
Outlier events often trump traditional predictive models
The biggest inadequacy of conventional commodity price forecasting models is that they are not necessarily prepared for black swan events.
There is a need to continually reset the forecasting configuration
While no model is omniscient, it is crucial that forecasting algorithms are retrained on fresh datasets and events (weather, tariffs) to improve forecast accuracy. The forecasting algorithms we use are dependent not just on macroeconomic factors but also on broader parameters to prepare traders for random and unexpected events (“black swans”).
Not all trackers are premised on broad-based datasets, so forecasting accuracy proves elusive. What are the features to look for in a tracker?Talk to Our Experts to see the spendedge blogs
Challenge: Faced with intense competition and the need to improve profit margins, our client turned to SpendEdge for assistance in overcoming their business challenges. One of the main strategies involved migrating cost-intensive operations to low-cost destinations.
Solution: Our team at SpendEdge assisted the client in streamlining their contract manufacturer selection process. Leveraging our expertise and market research methodology, we identified key contract manufacturers for the client’s ready-to-eat product line.
Result: The client successfully addressed their business challenges and achieved improved profit margins and reduced operating costs. All the while, also enhancing product quality and expanding manufacturing capabilities.Read More to see the spendedge blogs
SpendEdge portal gives us ready access to info on 50+ categories. And with the “Analyst Support” feature, our team is able to get all of its queries answered almost instantly by SpendEdge’s panel of top-notch procurement experts. It’s really a time-saving tool!
Branded packaged foods business- Senior Vice President (Global Supply Chain)
Thanks to the SpendEdge tool, our teams can directly access news articles focused on the procurement landscape. These cover a lot of ground, providing snapshots of industry, suppliers, and procurement tech. Previously, our category managers had to wade through a huge amount of information to get these news updates. So, SpendEdge is saving us a lot of time. That’s really something!
Well-known ICT firm- Director of Global Procurement
SpendEdge’s pricing insights section is something our team loves the most. Understanding pricing models, price points, and negotiation levers is a bit tricky. All these are covered in the SpendEdge reports, and that helps us gain quick insights.
A leader in chemicals- Director of Indirect Categories Procurement