Measuring the financial effects of mitigating commodity price volatility in supply chains

Gaudenzi, Barbara; Zsidisin, George A.; Pellegrino, Roberta

doi:10.1108/scm-02-2020-0047

Cited by 15 publications

(12 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Commodity price volatility that resulted from the Covid-19 crisis has been widely reviewed in the literature [80][81][82][83]. Oil and gas prices responded markedly, but have recovered since.…”

Section: Impact On Commodity Pricesmentioning

confidence: 99%

Zero-Emission Pathway for the Global Chemical and Petrochemical Sector

Saygin¹,

Gielen²

2021

Energies

View full text Add to dashboard Cite

The chemical and petrochemical sector relies on fossil fuels and feedstocks, and is a major source of carbon dioxide (CO2) emissions. The techno-economic potential of 20 decarbonisation options is assessed. While previous analyses focus on the production processes, this analysis covers the full product life cycle CO2 emissions. The analysis elaborates the carbon accounting complexity that results from the non-energy use of fossil fuels, and highlights the importance of strategies that consider the carbon stored in synthetic organic products—an aspect that warrants more attention in long-term energy scenarios and strategies. Average mitigation costs in the sector would amount to 64 United States dollars (USD) per tonne of CO2 for full decarbonisation in 2050. The rapidly declining renewables cost is one main cause for this low-cost estimate. Renewable energy supply solutions, in combination with electrification, account for 40% of total emissions reductions. Annual biomass use grows to 1.3 gigatonnes; green hydrogen electrolyser capacity grows to 2435 gigawatts and recycling rates increase six-fold, while product demand is reduced by a third, compared to the reference case. CO2 capture, storage and use equals 30% of the total decarbonisation effort (1.49 gigatonnes per year), where about one-third of the captured CO2 is of biogenic origin. Circular economy concepts, including recycling, account for 16%, while energy efficiency accounts for 12% of the decarbonisation needed. Achieving full decarbonisation in this sector will increase energy and feedstock costs by more than 35%. The analysis shows the importance of renewables-based solutions, accounting for more than half of the total emissions reduction potential, which was higher than previous estimates.

show abstract

Section: Impact On Commodity Pricesmentioning

confidence: 99%

Zero-Emission Pathway for the Global Chemical and Petrochemical Sector

Saygin¹,

Gielen²

2021

Energies

View full text Add to dashboard Cite

show abstract

“…Agricultural commodities (such as wheat, cocoa, soybean, and maize) can be purchased as inputs for a company's goods or as components of purchased items from a company's suppliers and/or as part of a company's operations and overhead costs [1]. is makes agricultural commodities a signi cant input for food companies.…”

Section: Introductionmentioning

confidence: 99%

On the Agricultural Commodities Supply Chain Resilience to Disruption: Insights from Financial Analysis

Hamidu

Oppong

Asafo−Adjei

et al. 2022

Mathematical Problems in Engineering

View full text Add to dashboard Cite

The study proffers the need to strengthen supply chain resilience toward the minimization of disruptions. We investigate the financial performance of agricultural commodities' supply chain amid external uncertainty shocks in both time and frequency dimensions. The wavelet techniques are employed for the analysis. Specifically, both the Windowed Scalogram Difference (WSD) and Wavelet Multiple techniques are utilized. First, the study finds from the WSD that disruption which we proxy with global economic policy uncertainty (GEPU) hurts all the agricultural commodities in the medium and long terms. For instance, we find high comovements between agricultural raw material (ARM) and GEPU. This is similar to the comovements between rice and GEPU. Additionally, high potential comovements between 2005 and 2016 in the medium and long term for fertilizer, maize, and possibly wheat with the GEPU are found. Generally, there seem to be fewer comovements between soybeans and the GEPU which is indicative of a resistance to shocks. Second, we find from the Wavelet Multiple approaches that most of the agricultural commodities are highly integrated, except rice. Findings from the study imply minimization of diversification, hedge, or safe haven benefits with regard to market conditions among the commodities. The findings have important inferences for policymakers, supply chain actors of agricultural commodities, and investors to extensively examine the heterogeneous and adaptive dynamics of the commodity markets. We advocate that supply chains of agricultural commodities must be borne with dynamic capacities to manage vulnerabilities in an uncertain environment, necessitating resilience capabilities to thrive in the long run. Also, investors should hedge against the portfolio risk present in these agricultural commodities. This study is the first to provide insights into the supply chain of agricultural commodities from a financial perspective through time and/or frequency analysis.

show abstract

“…A successful delivery implies quality, accuracy, and integrity of sourced goods [36], in the correct place and time [37]. Verifying whether delivery is successful is time-consuming because it entails inspecting goods, transportation, and documents and producing the PoD.…”

Section: B Distributed Ledger Technologies For Proof Of Deliverymentioning

confidence: 99%

Proof of Delivery Smart Contract for Performance Measurements

et al. 2022

View full text Add to dashboard Cite

The growth of the enterprise blockchain research supporting supply chain management calls for investigations of their impact and mindfulness of their design, use cases, and pilots. With a blockchain design for the Proof of Delivery (PoD) process management, this paper contributes to learning about performance measurement and the transaction costs implications during the development and application of smart contracts. An experimental design science approach is applied to develop an open-source blockchain to explore ways to make the delivery processes more efficient, the proof of delivery more reliable, and the performance measurements more accurate. The theory of Transaction Costs is applied to evaluate the cost implications of the adoption of smart contracts in the management of the PoD. The findings show that smart contracts make the delivery processes more efficient and proof of delivery more reliable. Yet, the methods and metrics are too complex and qualitative, limiting the smart contract's capability to measure performance. Our findings indicate potential transaction costs reduction by implementing a blockchainbased performance measurement. The complexities of the delivery process and proof of delivery call for precontractual steps to identify the processes and performance metrics to design blockchains. Smart contracts need further development and digital aids to handle qualitative inspections and proof of delivery generation during the delivery process. The blockchain requires the system's capacity to record off-chain transactions, such as in case of disputes resolutions. The authors extended blockchain research beyond the theoretical level, designing an open-source blockchain for supply chain management within the use case, pilot design, and case study.

show abstract

Measuring the financial effects of mitigating commodity price volatility in supply chains

Cited by 15 publications

References 52 publications

Zero-Emission Pathway for the Global Chemical and Petrochemical Sector

Zero-Emission Pathway for the Global Chemical and Petrochemical Sector

On the Agricultural Commodities Supply Chain Resilience to Disruption: Insights from Financial Analysis

Proof of Delivery Smart Contract for Performance Measurements

Contact Info

Product

Resources

About