SIGMA Procurement Algorithm
A quantitative decision engine that tells procurement teams when to buy and at which price levels. Built by Lualdi Advisors for commodity-dependent organizations that need repeatable, measurable procurement performance.
SIGMA transforms procurement from a reactive activity into a disciplined, repeatable process driven by proprietary quantitative signals. Its objective is to improve average purchase prices consistently over time by identifying high-probability buying windows and efficient price zones before they become apparent to the broader market.
The Procurement Challenge
Commodity markets now move faster than traditional procurement decision cycles. Many procurement teams still base execution on commentary, discretionary judgment, and delayed benchmarks, which exposes organizations to late execution, inconsistent decisions across cycles, and excessive dependence on individual experience.
This environment makes it difficult to standardize procurement, measure performance objectively, and demonstrate long-term value creation. What is missing is a system that removes noise and introduces discipline without relying on subjective interpretation.
The SIGMA Solution
SIGMA is a proprietary procurement algorithm developed by Lualdi Advisors to provide clear execution guidance. Its role is to determine when physical purchases should be executed and to identify the price levels that represent the most efficient buying opportunities.
By introducing a structured, signal-driven framework, SIGMA allows procurement and finance teams to operate with consistency, traceability, and accountability. Decisions are no longer driven by urgency or sentiment, but by repeatable quantitative logic that can be reviewed and improved over time.