Managing raw material cost volatility in production processes: towards sustainable managerial resilience

Abstract

The volatility of raw material costs poses a major strategic challenge for industrial companies, affecting financial stability, operational planning, and competitiveness. This article analyzes the managerial levers that enable companies to cope with this instability while building sustainable resilience. Methodologically, this research adopts a qualitative approach with conceptual and analytical aims, based on a structured review of recent academic literature in strategic management, supply chain, finance, and sustainable governance, supplemented by a systemic analysis of the organizational mechanisms that can be mobilized to address volatility. The corpus draws on recent empirical and theoretical work related to risk management, prospective modeling, supply diversification, and financial hedging instruments. The approach is based on an integrative logic that aims to link the strategic, operational, and financial dimensions within a coherent framework of organizational resilience. The study highlights the mechanisms for mitigating risks associated with price fluctuations through strategic governance, prospective modeling, diversification of supply sources, and the use of appropriate financial instruments. It also highlights the central role of managerial skills, a culture of resilience, and social responsibility in sustaining organizational performance. This paper makes a conceptual contribution by proposing an integrated framework for managing volatility, structured around eight complementary levers, as well as a managerial contribution by structuring resilience measurement indicators applicable to industrial organizations. It thus offers a systemic perspective that allows for transforming market volatility into a strategic opportunity for innovation and sustainable competitiveness.