BOM-linked exposure is the model that translates a commodity-price move into a P&L move by walking up the bill of materials. Every SKU is composed of raw materials, packaging, freight, and energy — each of which is, in turn, linked to a live commodity index or supplier quote. When the index moves, the SKU cost recalculates automatically, and the procurement team sees their forward exposure at the unit level.
Without BOM-linked exposure, a cocoa price spike is a chart on a Bloomberg terminal. With it, the spike becomes ”+€0.07 on every chocolate bar in Q4, +€2.1M on our committed volume.” The decision shifts from generic (“we should hedge cocoa”) to specific (“we should hedge 60% of our Q4 cocoa exposure at $4,400 because below that price the margin floor holds”).
INAYA’s Product Composer turns a recipe or BOM into a living cost model. Every input is linked to a live index or supplier quote, every unit cost is projected against the forward curve, and FX, freight, and energy are modelled in. The result: per-SKU forward exposure visible at any moment, against any time horizon, for any portion of the BOM.
Related concepts: procurement intelligence (the decision layer above), commodity audit trail (the evidence chain that travels with the exposure).