Cost of raw materials
Input cost by material and month against the index the formula prices on.
Why it matters
Input cost is what formula prices and surcharges are meant to follow. Watching it against the index shows when the formula is lagging and margin is paying for the lag.
Act when
Up over x% in one month, or a steady rise over a quarter
Thresholds are set per business; the ones written as x and y are placeholders your team fills in.
What it may signal
Supply volatility, contract prices lapsing.
What to do
The templates that respond when this metric moves.
- Cost pass-through scenariotemplate
- Index-linked and formula pricingtemplate
- Cost index forecasttemplate
How it’s defined
- Formula
'Material cost' / 'Material cost (prior period)' - 1- Required context
- Costs, Index series
- Dimensions
- Material, Plant, Family
- Cadence
- Reviewed monthly
- Lineage
- Every value traces to the invoice line or governing record it was computed from.
- Use in
- Alerts: an agent watches it against a rule and alerts you when it trips.
Relevant industries
See Cost of raw materials on your commercial data.
We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.