Over the past year Consumer Package Goods (CPG) companies have seen many of their Costs of Goods (CoG) decline. This has been driven by lower commodity prices and lower oil prices. These lower prices have affected plastic prices in many packaging materials and also the prices of many chemicals and product ingredients. On top of these lower commodity prices, flat labor costs have helped to keep CoG down. So…these cost savings must have been passed to consumer…right?
The Tokyo Commodity Exchange on Tuesday put into operation a new trading system that includes extended hours to permit trading at times when economic data is announced. It will also facilitate higher-speed transactions. It is the first such upgrade for the exchange since May 2009, aiming to improve convenience for investors and reinvigorate the sluggish commodity futures market. TOCOM will share its derivatives trading system with the Osaka Exchange, a unit of Japan Exchange Group Inc., or JPX. Commodity futures industry officials hope that the joint use will encourage stock brokerage firms to start commodities trading.
We all likely remember when supply chain visibility changed the game for commodity management. Suddenly, global suppliers had insights into the real-time locations and quantities of their inventory. This type of visibility gave crude oil marketers and traders actionable insights, improved ability to respond to the unexpected, and a leg up on their competition. Early adopters of game-changing technological trends like supply chain visibility often see unprecedented growth in their business. The key is identifying new technology with the potential to usher in a new era of commodity management.