Commodity Strategies


The concept reviews two categories of commodity strategies and describes their advantages and disadvantages. It also addresses implementation information and case evidence from leading companies.

Technique Overview

Commodity Strategies

Commodity Strategies Definition

Commodity strategies (sometimes referred to as 'commodity sourcing strategies') are purchasing strategy plans that refer to commodity goods - widely traded raw materials and agricultural products, such as wheat, corn, or rice (Seitz, 1994).

Commodity Strategies Description *

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Business Evidence

Strengths, weaknesses and examples of Commodity Strategies *

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Business Application

Implementation, success factors and measures of Commodity Strategies *

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Professional Tools

Commodity Strategies videos and downloads *

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Further Reading

Commodity Strategies web and print resources *

Commodity Strategies references (4 of up to 20) *

  • Ferris, J. (1997) Agricultural Price and Commodity Market Analysis. New York: McGraw-Hill.
  • Hayenga, M. (1979) Risk Management in Imperfect Markets: Commodity Procurement Strategy in the Food Manufacturing Sector. American Journal of Agricultural Economics, Vol. 61(2), pp. 351-357.
  • Jones, K., Curry, K., Raper, J., Whipple, M., Mollenkopf, M. and Peterson, C. (2007) Commodity-Procurement Strategies of Food Companies: A Case Study. Journal of Food Distribution Research, Vol. 38(3), pp. 37-53.
  • Leenders, M., Johnson, P., Flynn, A. and Fearon, H. (2006) Purchasing and Supply Management. (13th Ed.) Boston: McGraw-Hill Irwin.

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