WE ARE ESH GMBH

• Widespread availability — indicating multiple sources providing mostly interchangeable material.
• Low cost — commoditized materials are generally priced lower than specialty counterparts.
• Fluctuating cost — this is largely driven by the supply-demand situation in the market. Given the easy availability of materials and low fixed costs involved with production, prices are largely driven by consumer specific demand and volume (to a lesser extent).

• Understand the real quantities used.
• Establish clear terms with suppliers.
• Determine which commodities need a dedicated strategy.
• Implement a risk-mitigation plan.
• Set distinct savings goals.
• Track price changes.