The procurement process at manufacturing companies such as consumer products, food and beverage, and industrial is very complex. In many cases it involves the sourcing of thousands of commodities and raw material ingredients from hundreds of suppliers, to be processed at a multitude of geographically diverse plants.
Procurement data is contained in multiple versions of ERP or CTRM software systems, with financial hedging and FX data in treasury systems. Cost models, coverage, and analytics are managed in spreadsheets. Commodities companies require a solution that supports the needs of category managers, procurement finance, and risk managers.
Analyze data from all sources
Eka’s Commodity Analytics Cloud Procurement Analysis App does just that. Users can easily load, blend, and analyze data from all sources including ERPs such as SAP and Oracle, spreadsheets, market data, and CTRM and ETRM software. A dashboard with personalized monitors provides a summary of the key procurement areas that need to be monitored, measured, and managed – Coverage, Spend, Spend Attribution, Governance, Variance, FX, Mark to Market, and Margin Analysis.
The app allows you to analyze actual, forecast, and budgeted spend and drill to detail to quickly understand the drivers of variance. It also allows you to see covered and uncovered values by category, such as ingredients, energy, and packaging.
Measure against market prices
Historically, procurement was always measured against planned price. But with the volatile commodity prices we have seen over the last few years, it’s just as important, if not more important, to measure against market price. Could your buyers have done a better job locking in prices? It could mean the difference between profit and loss for the company. For example, if the covered price for an ingredient, such as wheat, is below plan, then by historical standards that would have been acceptable. But if the covered price was above the market price of wheat, then there is a chance that the team could have done better. This is the type of insight that Eka’s procurement analytics solution can provide to buyers and category managers with its powerful visualizations.
Run complex simulations
Another powerful feature of the app is the ability to run simulations so you can analyze scenarios before finalizing a strategy. You can simulate cost model rates, covered volumes, forecasted volumes, item covered quantity, and item price, and save each scenario for future use. The customized monitors update with each simulation so you can understand the effects of different scenarios. Eka's procurement analytics solution is a tremendous leap forward in managing the procurement of raw materials, energy, packaging, and non-commodities.
4-minute demo video
In this demo, you’ll learn the answers to common questions such as:
- How can I see the impact of changing market prices on my portfolio?
- How can I ensure my buyers are making the best purchasing decisions?
- How can I gain a complete view of coverage analytics without relying on a team of analysts?
Watch the Commodity Analytics Cloud Procurement App Video Now!
