Our objective is to become part of our clients’ commodity management teams. Many times our clients are experiencing a gap in their resources due to loss of key personnel or simply a lack of commodity expertise. To bridge that gap we provide highly customized solutions to support those needs on a short-term or extended basis.
Ingredient Supplier with Significant Exposure to the Corn Market
This privately-held manufacturer made commodity decisions at the president or owner level. As market volatility increased, it became apparent that more focus needed to be placed on the corn market. Additionally, the company wanted to begin to use options and SWAPS strategies when appropriate. Without experienced personnel, the client turned to Beeson & Associates, Inc. for support.
Corn purchasing decisions are now made based on research and recommendations from us in our monthly commodity meeting. A full range of strategies are explored from simple cash forward contracts to use of futures and options. The ultimate positions are tracked and reported to the client. In short, we are the client’s corn purchasing experts and a fully integrated part of their purchasing team.
Food Service Company with Over $1 Billion in Sales
This very large casual dining concept struggled to fill a commodity analyst position. Finding the right employee was a search that had consumed over six months. In the meantime, the purchasing team and its talented staff were drawn into research and reporting efforts that were not the best use of their skills. Beeson & Associates, Inc. filled the analyst role at a cost that was very competitive with the approved budget.
Due to our weekly market review across the range of commodities purchased, buyers now spend time sourcing products and not reading piles of commodity information. The client can focus on efforts that truly drive the business knowing the commodity situation will not get away from them. The weekly sessions provide an opportunity for the client to set strategy at the buyer level and for purchasing management to stay abreast of the markets and actions their team is taking.
How the Process Works
- Beeson & Associates, Inc. provides an associate with experience in the commodity markets who learns the client’s current purchasing practices’. That includes suppliers, internal contacts within the client’s organization, and current coverages.
- Direct lines of communication are established that may include an email address at the client’s domain.
- Although most support can be done remotely, some clients prefer significant presence in their office.
- The role is fully executed as if we were an employee. In an environment where an employee’s primary communication is via email, conference call, or other electronic means, supporting clients on an outsourced basis is achieved with little extra effort from our clients.
- Our clients can immediately fill a resource gap with an experienced commodity purchasing expert. This provides continuity during the search for a qualified candidate, while also providing higher quality support than can be attracted to the internal position.
- The cost of the support is less than that of an employee of similar experience.