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Material costs are an important part of the total costs.
The material must be pre-financed, which puts pressure on your liquidity position.
The risk management of the material costs can be monitored through the BFW module 'risk management material costs' (FRM).
This module compares purchase contracts with future deliveries, allowing you to gain insight into your delivery obligations (both in volume and price).
Why risk management?
It is not uncommon to see significant fluctuations in the cost of materials.
Once a significant change in price occurs, it is important to know what this will mean for the results of your current projects.
Development steel prices
The contractor can only be charged for price fluctuations to a limited extent.
The risk management material costs module focuses on determining the tonnage still to be delivered and the associated costs.
Your profits or losses on future deliveries
If the purchase price of the material is higher than the budgeted price, this may result in a potential loss.
If the price is lower, this may result in profit.
If the material price increases, it may be attractive to buy.
Want to know at which price and quantities this is the case?
The risk management material costs module will calculate this for you.
Risk management material costs screen
Legend:
Fully covered
Not covered
Partially covered
Covered against higher costs
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