How to build a commodity coverage plan from your demand forecast
A coverage plan says how much of your forecast is already bought, how much is still open, and when the open part must be booked.
Start from the forecast
List each commodity line with its volume, unit and the month coverage must start.
- One row per commodity and grade
- Use the same unit as your supplier contracts
- Note the budget price finance has approved
Subtract what is already covered
Coverage needed = forecast minus current position. This open volume is your exposure.
Set a book-by date
Work back from the coverage start date, allowing time for quotes, approval and contracts.
- Request quotes 4–6 weeks ahead
- Allow one council cycle for approval
Decision support for procurement, not investment or trading advice. Market conditions change; check current data before booking.