Manufacturing
Raw materials are a large share of cost, and their prices move faster than budgets and price lists. Vadar Alpha connects buying, production, pricing and hedging to the live market.
Who we serve · Manufacturing, food and beverage, freight, agribusiness, distribution
The market sets your costs. Customers set your price.
The companies we serve buy large commodity inputs at volatile prices and volumes, run on thin margins, and sell into competitive markets where costs are hard to pass on. A small move in inputs becomes a big swing in earnings. Vadar Alpha prices what you buy, make, sell and hedge against the market, for higher margins and steadier earnings.
Industries
Margin management and raw material price volatility
Manufacturing
Every team sees part of the margin.
Class 3 milk futures and ingredient hedgingFood, beverage and consumer goods
Commodity inputs. Contract prices.
Fleet cost per mile and freight marginFreight and logistics
Costs move by the day. Freight rates move by the year.
Crush margin, basis and freightAgribusiness
One crop. Five places to lose the margin.
Margin and cost pass-throughDistribution and retail
Thin margins. Thousands of items. Costs that move every week.
Other industries
Fit comes from the shape of a business more than its sector. These five sectors have that shape most often, and plenty of companies outside them do too.
Book a callWho we serve
Built for companies that make and move physical goods.
Our customers carry large input costs and thin margins, and sell into markets that resist price increases.
FitSix conditions
- High physical input costs
- Volatile prices and volumes
- Tight margins
- Competitive end markets
- No easy way to pass a cost on
- Need both higher margins and steadier earnings
In depth
The industries we serve
Fit comes from the shape of a business more than its sector. These five sectors have that shape most often, and plenty of companies outside them do too.
Food, beverage and consumer goods
Ingredients such as milk, grains, sugar and oils can change in price by the day, while retail prices are hard to change. Vadar Alpha prices each ingredient, recipe and customer price against the market.
Freight and logistics
Fuel, rates and capacity move every day. Vadar Alpha prices lanes, backhauls and fuel recovery, so margin per mile is known before dispatch.
Agribusiness
Crop prices, basis, freight and currency move every day, and each one moves the spread between the crop and the oil, meal and grain it becomes. Vadar Alpha prices each purchase, crush, cargo and quote against the market.
Distribution and retail
Supplier costs, fuel and commodity items move every week, while price lists and cost plus contracts move far less often. Vadar Alpha prices each purchase, stock level, route and customer price against the market, so cost changes reach the price on time.
Questions
Questions we hear most.
How large does a company need to be?
Large enough that input costs and price moves change the year's earnings. Talk to us and we will tell you plainly whether there is enough margin at stake.
Which commodities do you work with?
All the core commodity groups: agriculture, metals, energy and the materials that go into packaging. If an input's price follows a market, Vadar Alpha can price decisions against it.
Is this only for companies that hedge?
No. Many companies start with buying or pricing, where margin is decided every day. Hedging is one of the four decisions on the platform, and you can add it when you are ready.
We already have systems of record. What does this add?
Your ERP, TMS and other systems of record tell you what happened. Vadar Alpha tells you what to do next, and what each decision is worth to your earnings before you make it. It reads from the systems you already have, so nothing is replaced.
Start here
See what your margin could be.
A 30 minute conversation to see where your margin leaks and whether we can help.
Book a call