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Procurement
Decide when to buy, how much and how to hedge on raw materials and energy.
Raw material and energy prices cannot be controlled, but they can be estimated in various scenarios and translated into profit margins. WhAI compares purchase plans, hedges, and spot prices, and determines the best decision, in euros.
Lower average purchase cost on all raw materials
Less margin exposed to raw material price swings
Less cash tied up in inventory and safety stock
THE PROBLEM
Purchases are made in a hurry, not on a forecast: the risk lands on margin.
Purchases on a fixed cadence
You buy on a fixed cadence or on price-rise announcements, tracking prices on sites and newsletters.
Right price, wrong timing
The cost of buying at the wrong moment never shows on an invoice or in the actuals.
Margin exposed to rises
Price rises hit margin before price lists, and nobody knows how much can be passed on.
SOLUTIONS FOR
Procurement
From market prices to hedging.
The function's recurring decisions, each with its own data and constraints.
PROCUREMENT
Price and cost scenarios
Forecasts on raw materials and energy from market sources, translated into margin exposed to rises.
- Average purchase cost of raw materials
- Margin exposed to price rises, measured
- Share of price rises passed on to selling prices
PROCUREMENT
Price and cost scenarios
Forecasts on raw materials and energy from market sources, translated into margin exposed to rises.
- Average purchase cost of raw materials
- Margin exposed to price rises, measured
- Share of price rises passed on to selling prices
PROCUREMENT
Supplier risk
How much the company depends on each supplier, and what happens to margin if one stops or raises prices.
- Dependency measured by supplier, area and category
- Supply stoppages and delays avoided
- Better terms in negotiation
PROCUREMENT
Price and cost scenarios
Forecasts on raw materials and energy from market sources, translated into margin exposed to rises.
- Average purchase cost of raw materials
- Margin exposed to price rises, measured
- Share of price rises passed on to selling prices
PROCUREMENT
Supplier risk
How much the company depends on each supplier, and what happens to margin if one stops or raises prices.
- Dependency measured by supplier, area and category
- Supply stoppages and delays avoided
- Better terms in negotiation
PROCUREMENT
Hedging strategies
The most cost-effective purchasing and hedging plan, within stock and cash, compared with spot.
- Price volatility exposure reduced
- Hedges compared with spot, even in the worst case
- Cash tied up in stock under control
PROCUREMENT
Price and cost scenarios
Forecasts on raw materials and energy from market sources, translated into margin exposed to rises.
- Average purchase cost of raw materials
- Margin exposed to price rises, measured
- Share of price rises passed on to selling prices
PROCUREMENT
Supplier risk
How much the company depends on each supplier, and what happens to margin if one stops or raises prices.
- Dependency measured by supplier, area and category
- Supply stoppages and delays avoided
- Better terms in negotiation
PROCUREMENT
Hedging strategies
The most cost-effective purchasing and hedging plan, within stock and cash, compared with spot.
- Price volatility exposure reduced
- Hedges compared with spot, even in the worst case
- Cash tied up in stock under control
A USE CASE
Raw material purchasing: buy at the right time, with less risk.
The decision
When, how much and how to hedge on raw materials.
What WhAI does
01
Forecasts raw materials and energy, from market sources
02
Measures exposed margin and how much of a rise is passed on
03
Purchase and hedging plan, within stock and cash limits
04
Compares with spot buying, including worst-case scenarios
What the annual return depends on
Average purchase cost of materials
Exposure to price volatility
Cash tied up in inventory
DECISION INTELLIGENCE
Decisions calculated on your numbers
WhAI: the missing layer for your decisions
WhAI turns the way your company decides into a calculation model. It simulates every choice before you act, estimates the probability of hitting the goal and tracks the outcome.
DISCOVER WHAI
AI NAVIGATOR
Which processes should you bring AI into?
AI Navigator is the assessment that identifies where AI creates the most value and which use case to start with: it cross-references data, process maturity, impact on margins and people, and returns your AI Value Map.
The highest-value use case
The KPIs to track
The estimated annual return
News & Resources
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