Forward Pricing & Risk Management
Risk Management is the formulation and execution of a pricing strategy relative to future business. At Sherwood Lumber, our Risk Management Team assesses our inventory risk along with forward risk. After looking at our proprietary data, market conditions, and fundamental ideas of the team, we come up with a strategy and execution plan. These ideas can also be used by our customers to increase their bottom line and add sales.
Checklist of Risk Exposure
- How far out are you being asked to commit?
- What is the current market of said item?
- What is the fundamental supply/demand ratio of the species involved?
- Can I buy and hold, take it short, or lock in the price with Guaranteed Forward Pricing?
- What solution can Sherwood Lumber provide?
Guaranteed Forward Pricing Offers:
- Protect your lumber and OSB costs for up to one year. The ability to quote your customers fixed lumber or fixed OSB prices year round gives you a big competitive advantage.
- Lock in profit. You are assured of your profit margin on the lumber and OSB business you Forward Price
- Reduce cash outlay. Your lumber and OSB shipments are scheduled over a period of time, so you don't pay for the lumber until it is needed.
- No inventory depreciation. Delivery of lumber is deferred until it is needed; inventory is always fresh.
- Normal transaction. All paperwork and procedures are exactly the same as a normal daily transaction, except that shipments are scheduled for future delivery and payment made when product ships.
- Time saving. Since some portion of your future lumber requirements will have been purchased, there is more time available for other profitable activities.
May 08, 2013
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Featured LocationDistribution Center - Holtsville, NY
Featured LocationDistribution Center - Palmer, MA