Why this matters to buyers
The described market volatility puts pressure on traditional cost-focused procurement strategies. Buyers may face increased price uncertainty and supply chain instability, making long-term fixed-price contracts riskier.
Recommended buyer actions
- Re-evaluate procurement strategies to prioritize supply security and flexibility over lowest initial price.
- Consider diversifying suppliers or logistics partners to mitigate risks from trade barriers and geopolitical instability.
Original source context
“Secure it cheap now, rather than buying it later.” For years, this principle underpinned freight procurement strategies. However, that logic is becoming increasingly outdated, writes Bernhard Schmaldienst (pictured, below), Associate VP Transporeon Products at Trimble. A combination of rising trade barriers, geopolitical instability, energy price shocks, and volatile demand cycles has fundamentally reshaped the operating […] The post Volatile Markets Put Pressure on Procurement appeared first on Logistics Business.
Read the original report · Logistics Business