Volatility in both the buying and selling of natural resources commodities creates tremendous complexity, but also tremendous profit opportunity for forward-thinking businesses with the right tools.
In this case, “Joe” and DecisionNext worked together to determine the most important drivers of market prices for his commodity products. DecisionNext provided his company with a forecasting tool that allows him to simulate price scenarios by manipulating drivers.
Avoiding the disagreements that lead people to disregard a forecast altogether, DecisionNext helps users to understand how much weight should be applied to various factors that affect prices. Once a market scenario is approved, Joe can apply multiple decision-support tools to help set his company’s forward book, pick optimal contract types and lengths, and even request specific blends from the mines.