Building Supply Resilience and Cost Stability Through Strategic
Commodity Risk Management
The client, a global leader in consumer healthcare, relied on
complex multi-material packaging, including blisters, cartons,
sachets, tubes, PET/HDPE.PP bottles, foil/laminates, adhesive
labels, metal, and glass. Considering regulatory and quality
constraints, this makes managing raw material volatility especially
crucial for maintaining healthy margins. Sourced from suppliers
across Asia, the US, and the EU, the packaging supply chain faced
repeated volatility in crude oil, resin, paper, and metal prices,
causing unpredictable cost surges that disrupted margin forecasts
and strained operational budgets. Suppliers across different global
regions put quarterly and bi-yearly price changes which impacted
overall packaging budget of the company and led to difficult
sourcing decisions due to constant commodity fluctuation risk and
price increase. Procurement and supply teams sought a