The client had annual consumption of 93mio€ of several commodities. These commodities were bought on requirements, and prices varied based on spot agreements. If the commodities were cheaper due to a lower global exchange rate, then the client was happy. With the former growth demand of China, these commodities became more expensive. The client never experienced such price variations and suffered a profit drain. 

A detailed study of the different commodities was asked to execute by Blue Chain. Based on a risk matrix the different spend categories were defined. For each spend category the opportunities, risks and challenges were defined.

A lead buyer was appointed to every category, who developed the frame agreement with the supplier. Clear hedging and index links were negotiated which smoothened the price movements. The client incorporated these agreements in his sales contracts. Blue Chain assisted with this contractual phase and the training how to sell these agreements. Finally all commodity variances were contracted back-to-back with the sales contracts, and the profit drain was stopped.