Over the years, the management of commodities and the risks associated with this activity have evolved as both the type and quantity of data to be managed has changed. Smart Commodity Management provides real-time, meaningful, and actionable information to traders, risk managers, and executives to enable them to view, analyze, and simulate positions, market movements, and risk metrics. Users can monitor metrics such as position, exposure, inventory, in-transit movements, scheduled movements, counterparty risk limits, P&L, and so on by both commodity and instrument type, across both physicals and derivatives, enterprise-wide or via drill-down to trading unit and individual trader levels.
Some of the signs that it's time to make the move to Smart Commodity Management include:
Read more at "Warning Signs that It's Time to Replace Your ETRM or CTRM Software."
If you are currently noticing these signs at your organization, ask yourself the following questions, and learn some of the benefits to be gained by investing in next-generation CTRM software or ETRM software.
You can easily look up what your correct hedge exposure should be before making any deal to avoid under-hedging or over-hedging. As prices move, the system will alert you to approaching margin calls. The system can tell you the average price of your hedges, which can be particularly useful in a market of volatile prices.
Real-time position data is immediately available, and based on data already recorded in the system on contracts, amendments, movements, stock quality, and weight updates. Accurate P&L data is always available.
Reconciling third party invoices against bills is quick and easy with automatic system prompts. P&L data is kept current. The software includes features that enable users to upload invoices quickly such as the ability to upload multiple invoices at a time and select cost data instead of re-entering it every time.
Current cash flow is tracked and reported across accounts payables and receivables, across purchases, sales, derivatives, and costs. A view of projected cash flow is available based upon forecasted transactions.
Accurate invoices are generated immediately, even taking into account provisional, advanced payments. VAT and tax are calculated correctly. The format of invoices can be customized to meet the needs of customers. Draft invoices can be configured with an approval process to issue final invoices upon approval.
You can easily manage credit risk and immediately provide a credit report to senior management. Credit limits can be set up and managed across counterparties along with group level limits. Red flags are raised when credit limits are breached, and alerts are automatically sent to credit managers. Forecasted credit is also supported depending on terms of payment.
The system includes built-in safeguards to ensure all movements of stock are recorded, keeping the data accurate at all times. The value of stock on hand is known at all times, as market prices change. Information about available stock on hand at all locations is available to all users.
Custom reports can be created at will, even when the requested reporting requirements were not planned or expected at the time the system was put in place. With a next-gen system you can build custom reports from different functions (for example, logistics and credit risk). Users can customize charts, graphics, and dashboards and schedule reports to run automatically.
All invoices, costs, valuations, and other information required for month closure are recorded in the system quickly and accurately. A role-based month-end closure process permits the accounting department to do a step by step close disabling access to that month's data by operations, while still allowing operations to record invoices and movements to the next month. With no new invoices coming in, accounting can perform a faster reconcilation while still retaining the ability to modify entries before closing the month to all users.
It's easy to find the right document at the right time. Information is readily available through a browser, on any type of device, and can be directly emailed to the customer.
Eka's Smart Commodity Management is a next-generation E/CTRM software solution that meets the operational and analytical needs of commodities companies and supports a wide range of commodities in the agricultural, manufacturing, metals, and energy industries. Commodity market participants use Eka's solutions for commodity specific analytics and for the management of commodity trading, raw material procurement, risk & compliance, and supply chain & operations.