Point of view · Volatile markets

    Why do purchase criteria shift in volatile markets?

    In volatile, uncertain markets, supply assurance and lead time can quickly become the criteria that decide a purchase, and share and price move with them. Purchase criteria, competitive strength and value maps are not fixed; they need to be revisited whenever supply risk changes.

    What is happening

    Geopolitical stress, tariffs and capacity changes are moving markets faster than annual plans. In several chemical markets, customers have shifted volume toward suppliers who can guarantee supply and lead time, even at higher prices.

    The fertilizer and sulphur angle

    A Market Edge alumnus with P&L leadership in industrial markets outlined how disruption at the Strait of Hormuz could move urea prices and the sulphuric acid value chain, with knock-on effects for phosphate fertilizers, metals processing and food security.

    Our point of view

    Strategic marketing provides the logic and tools to keep up. When the environment changes, re-weight purchase criteria, re-score competitors and redraw the value map. A strength that did not count last year, such as regional supply, can be worth a premium now.

    What to do about it

    01

    Build scenarios

    Rate risks by probability and impact and combine them into a few scenarios.

    02

    Re-weight criteria

    Check with customers whether supply assurance and lead time now matter more.

    03

    Re-score competitors

    Update the competitive assessment for each scenario.

    04

    Price the assurance

    Use the value map to see what supply security is worth.

    Questions about this

    Is supply assurance a purchase criterion?

    In stable markets it is often a given. In volatile markets it can become the deciding criterion, and customers will pay for it.

    How often should we update purchase criteria?

    At least every planning cycle, and immediately after a major supply or policy shock.

    Adapted from Market Edge posts in the Market Edge Alumni Network, April 2026, including analysis shared by an alumnus. Join the conversation in the Market Edge Alumni Network.

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