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8 May 2014 | Gurjit Degun in Las Vegas, US
Procurement professionals must be "very careful” when using commodity reports to help with forecasting risk, the Institute for Supply Management (ISM) annual conference has heard.
Robert Hanshaw, commodity risk manager for Coca-Cola Refreshments, told delegates they should not take commodity price reports as read because they are only “a snapshot in time”.
“Once you take that snap, the next day it’s completely different,” he said. “so you really need to understand and know your market very well before you use that.”
Hanshaw added: “People who sell information for a living are not going to sell it if they say nothing’s going to happen. They’ve got to put something out there to make you think but a lot of the time it’s just their guess, your guess is as good as mine.
“Manage your risk, manage your books in the best way that makes sense for you. Know your information, be comfortable with it, understand your view. Listen to what they’re saying, understand it and say, ‘yes, I saw that story and here’s why I think we don’t need to worry about it,' - or ‘yes, I saw that story and I agree with it and this is why’. Understand your own view because if you don’t you’re just going to be chasing your tail.”