Securing Fixed-Price Raw Material Contracts in Volatile Commodity Markets
Commodity price spikes can destroy manufacturing margins overnight. Discover how procurement leaders negotiate collar agreements and index-linked price caps.
Amit KasliwalCEO & Founder, Dehurdle
May 08, 20244 min read
The Index Collar Negotiation Script
Recommended Spoken Script
"To protect both parties against London Metal Exchange volatility, we propose a symmetrical collar: if aluminum prices fluctuate within $± 8\%$, the contract price remains fixed. If prices move beyond that band, we split the difference 50/50, guaranteeing you predictable manufacturing volume while protecting our unit margins."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice raw material price negotiations in Dehurdle's Procurement Arena.