The economic calamity of the last three years has been painful in many respects. Businesses worldwide have undergone serious stress and we’ve all been left waiting for the next shoe to drop after the numerous warnings of a looming recession. But if there’s one thing we’ve learned and can say with confidence, it’s to always expect the unexpected.
That being said, the only way to hedge against uncertainty with any degree of confidence is with reliable historical data, transaction-based raw material price forecasts, and the industry experience to connect the relevant dots and provide meaningful insights.
Pulp and Paper is already an incredibly volatile industry. With promises of more turbulence to come on top of what we’ve already experienced, it’s imperative now more than ever to assess where your business stands and make strategic, actionable plans.
When uncovering the foundational elements that ensure success for your company, it is important to always keep in mind that knowledge is power. Continuously staying informed of the various factors that impact your business is crucial to maintaining success within your industry.
Small changes along the supply chain can have cumulative impacts. Therefore, it is important to have access to reliable insights at the local, national and global levels that can help you confidently plan ahead for optimal success despite the potential for volatile market conditions.
How Fisher Empowers Companies with Our Unparalleled Resources
Fisher International regularly performs due diligence assignments and custom resource assessments on behalf of producers, suppliers and investors operating within the global Pulp and Paper industry. We use our industry leading FisherSolve platform which is powered by highly detailed information on every pulp and paper mill in the world. The platform helps customers uncover untapped opportunities and mitigate vulnerabilities while revealing the best path for sustainable, profitable growth.
However, what enhances the value of this database, and what distinguishes Fisher from any other service, is the use of our Leveraged Consulting services in combination with our proprietary database. Our Leveraged Consulting approach allows for the substantial work to be done on day one of a project. This is in stark contrast to traditional consulting, which is typically accomplished by researching and assembling data before any analytical work and insight can begin.
Our strategic consulting was built on extensive data and with a range of global experts in all facets of the industry. Leaders can utilize these insights to make high-stake decisions with absolute confidence.
To get a better understanding of how Fisher’s Leveraged Consulting services can help companies navigate an array of situations and challenges, let’s look at a hypothetical scenario.
Company ABC is a medium-size North American cartonboard producer who hopes to develop a successful strategy to enter the European market. In order to so, a complete study about the European cartonboard market needs to be produced. This includes information on capacity and demand trends for European cartonboard grades, the major players, final clients, and related components.
Fisher’s Leveraged Consulting can begin the research and data process based on ABC’s specific business objectives right away. Once there is a solid consensus of what the goal is, our consultants utilize Fisher’s database to see the impact of recent asset changes in the European cartonboard segment and identify the areas of opportunities for ABC.
After these areas have been identified, our consultants then utilize FisherSolve’s various forecast models to explore a “what if” scenario analysis. One way of achieving this is with our Market Optimizer module.
Market Optimizer is a unique price benchmark that provides exclusive insight on how to better allocate your volume globally. This can help you to maximize your profits and explore markets you may have never previously considered.
Our module provides you with a matrix view of information such as:
- Your weight hypothetically placed in 100+ destinations worldwide.
- An analytical view of your competitiveness in various locations
- Import information on up to 58 select countries.
- The weighted cost average of the most competitive mills in each area, indicating the advantages or disadvantages of your selected mill in each area.
To learn more about Market Optimizer, download our informational white paper here.
Considering the total market for imported goods (represented on the x-axis) illustrated in the graph below, Fisher can show ABC where it should focus its efforts. The grey dots in the bars indicate the weighted average cost of the major cartonboard competitors in each country. And the width of each bar indicates the size of that country’s annualized imports – the wider the bar, the more imports. This means ABC can compare this price against its own delivered cost to the location if it were to allocate some of its production to this destination.
Total Delivered Cost by Country
Source: Market Optimizer
By conducting such a thorough and detailed study, Fisher’s consultants can provide ABC with the full picture of what they are potentially walking into. This can help them develop a strategic plan that allows them to sell in the European cartonboard segment and remain profitable.
Global market uncertainty is the highest it has been since the Great Recession. To alleviate some of the pressures that have impacted your business over the last several months or years, you need not only a collection of enhanced business tools, but a team of experts with a vast range of experience and expertise. This will enable you to make better decisions with a high degree of confidence.
For more information on how Fisher’s Leverage Consulting services can help you with your next project, contact us today.