Professional Course

Commodity Management

1 day
1 day
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Course description

Does your organisation buy raw materials directly or indirectly within the supply chain? Do your suppliers quote short-term prices that seem to fluctuate widely? Is a significant quantity of your procurement undertaken in a different currency? If so, then the Fundamentals of Commodity Management course is for you. This one-day course will help you to develop a basic awareness of commodity products and currency management.

Training content

Session 1

Defining the scope, categorising commodity types, currency and equities and vocabulary of commodity management:

  • The difference between hard, soft and fiscal commodities
  • Procurement of commodities in manufacturing
  • Understanding commodities in pricing and negotiation
  • Political, global, projected scarcity weather patterns, climate, and natural impactors
  • The impact of the economy, currency, regulators, and legislation

Session 2

Management of commodity and market risk

  • Evaluating and quantifying risk and risk appetite
  • Currency fluctuations and trading strategies
  • Spot, options (traded and traditional), futures, offsets, and other forms of hedging
  • Environment and Market Analysis (SWOT, STEEPLED, Porters 5 forces)

Session 3

What factors affect the supply of:

  • Group A – A hard commodity (Oil)
  • Group B – A soft commodity (Coffee Beans)
  • Group C – A fiscal commodity (US Dollars/ Euros)

Session 4

Development of a commodity strategy reflecting an organisation’s projected demand requirement, the specific commodity, the market forecasts, as well as the risk appetite of the wider business:

  • Typical contents of a commodity management strategy
  • Managing your commodities as projects (setting up timelines and deliverables)
  • Developing performance measures (balanced scorecards, KPIs, benchmarking)

Course delivery details

  • Your skills training will comprise of online learning and a tutor-led session.
  • Online pre-learning and course materials will be available on the CIPS Learning Mangement System up-to one month ahead of your training session and should be completed before day 1 and day 2.
  • The virtual classroom will open 15 minutes before your session.

Certification / Credits

What will I learn?

As part of this course, you will have access to pre and post-work activities online to help you prepare and reflect on your training. You will learn about the core features and values generated from commodity and currency markets. This will include exploring market dynamics, market drivers and what tools exist to help you research such markets. You will look at how the drivers for organic and inorganic markets differentiate and use recognised tools to assess the commodity market behaviour. This course uses some specific commodity case studies e.g., coffee, oil, and currency to explore what is happening real-time and how this learning can apply to other commodities.

What are the learning objectives?

By the end of this course, you will be able to:

  • Outline the core features and values generated from a commodity and currency market
  • Explain the concept of the market itself, the market dynamics and market drivers
  • Differentiate between the drivers in an organic and inorganic market
  • Evaluate the drivers within different commodities
  • Explore the consequences of supply and pricing of external STEEPLED factors
  • Know how to capitalise upon opportunities and defend against risks in commodity procurement

Why choose CIPS?

95% of our students tell us that CIPS qualifications are the standard for the profession

Professionals with MCIPS on average earn 20% more

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Chartered Institute of Procurement & Supply
Church Street, Easton on the Hill,
PE9 3NZ Lincolnshire

We are CIPS, the Chartered Institute of Procurement & Supply

A global membership organisation driving positive change across our profession. CIPS are the voice and standard, defining and amplifying best practice across all our worlds. We help build capability within organisations. Diagnosing, troubleshooting and training. We’ll work with your organisation...

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