Why is spot purchase price monitoring considered difficult?

Spot purchase price monitoring is considered difficult primarily because these prices can be highly variable and influenced by numerous factors. The nature of spot purchases involves buying goods or services for immediate delivery at current market rates, which means that prices can change rapidly. This fluctuation can be driven by supply and demand dynamics, geopolitical events, changes in market conditions, and other external factors that can affect the availability of the product or service.

Monitoring these prices effectively requires constant attention and real-time data, making it challenging for organizations to maintain an accurate assessment of costs. Lagging behind in monitoring can result in missed opportunities for better pricing or lead to overpaying for goods or services during high-demand periods. Thus, the inherent volatility and unpredictability of spot prices greatly complicate the task of monitoring them effectively.