Globalization of operations and a proliferation of contract types mean food producers and consumer packaged goods manufacturers face increased complexity in managing inventory and forward commitment of raw materials. There's more risk of supplier failure and price volatility continues. At the same time, greater competition in markets for finished goods leaves little room to pass on unexpected price increases downstream.
OpenLink provides a complete solution for margin management on finished goods – from raw materials procurement and forecasting, to recipe management, contract management, transportation and logistics right through to risk management, treasury management, compliance and reporting. This means you can follow the path of materials right through from origination through to finished goods, to get complete visibility into margin contribution from each process in the value chain.
With procurement and finance working within the same system, materials purchasing and hedging can be seamless. And OpenLink allows you to model the effect of supplier failure to understand potential future exposure and devise measures to mitigate supplier default risk. The solution also delivers transparency into inventory and forward commitment of raw materials in manufacturing entities worldwide; enabling you to manage risk more effectively.