Sourcing in a Down Economy: Making the Best of Opportunities and Staying Clear of Risks

The tide of rising prices and supply constraints has finally turned. The old adage “what goes up must come down” has never been truer than in today’s supply markets environment. Examples of price declines are astounding. In early July 2008, copper traded at $8,980 per metric ton; by mid-January 2009 it was down to $3,342 – a 63% decline. Hot-rolled steel sheet is down 52% since May 2008. Sulfur is down 62% since just September 2008. Crude oil has dropped 74% since July 2008.

While the switch from a supplier’s market to a buyer’s market is welcome by most procurement professionals, this shift brings both opportunities and risks. This whitepaper offers detailed insights into the potential effects associated with the changing supply markets.

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