Imbalances in supply and demand as well as sudden weather events are some of the challenges faced by commodities companies in coffee and cocoa. Yet the commodity management software available was not always up to the challenge of meeting the needs of commodities companies. In the last 20+ years, commodity trading and risk management (CTRM) software evolved to support an increased functional footprint. But older solutions were mainly transaction-based solutions with limited analytics and support for real-time decision making. These systems were not equipped to handle the increasing quantities and types of data.
Analytics for Effective Commodity Management
To remain competitive, commodities companies need to be able to make better decisions with the huge quantity of data that is available to them. The requirements of commodity management platforms are changing from essentially an after-the-fact recording and reporting system to one that provides real intelligence and value back to the business. Responding to these needs requires next-generation software solutions. The generational shift from transaction only systems to next-generation commodity management software with advanced analytics is a big shift for many vendors.
To meet the current needs of commodities companies, Eka has taken an entirely different approach from the traditional solutions. Early on, Eka recognized the need for Smart Commodity Management, those systems that provide 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. Learn more in "Eka is Redefining the Commodity Management Software Market."
The key to next-generation Smart Commodity Management solutions is analytics. Analytics has become paramount. To remain competitive in today’s volatile markets, commodities companies need next-generation systems that include management control and decision support to make better, faster, fact-based decisions.
For example, with commodity-specific analytics:
- Coffee traders can analyze price differentials to optimize trading decisions. Analytics makes it easier to closely monitor the origination markets to assess trends that could cause price movements and spot opportunities and risks.
- Coffee roasters can see how they are performing against budgets and if their plants will provide enough volume based on plans. They can see the impact of weather on crops and analyze the performance of their suppliers.
- Cocoa companies can maximize profitability using analytics to answer questions on the correct quality of cocoa beans to buy and blend to create the most optimal blend or meet the sales requirement.
Make no mistake — it is still critical that CTRM software solutions include all the traditional features of transaction-based systems. Part of Eka's Smart Commodity Management is InSight CM, an end-to-end transaction management platform fully supporting coffee and cocoa supply chains.
Also part of Eka’s Smart Commodity Management is Commodity Analytics Cloud, an advanced analytics solution that brings commodity specific intelligence to all business users. The combination of InSight CM and Commodity Analytics Cloud provides the operational and analytical solutions that commodities companies need to manage in today’s complex and volatile markets.
Commodity Analytics Cloud allows business users to focus on data analysis instead of data collection. This solution takes analytics out of the realm of the IT department and delivers apps specifically designed for the commodities markets, addressing high value business issues. Commodity Analytics Cloud meets the needs that commodity market participants have for real-time analytics to make better business decisions.
Benefits of Commodity Analytics Cloud
The benefits of Commodity Analytics Cloud include:
- Commodities specific intelligence — With Commodity Analytics Cloud, users gain built-in industry intelligence to help them make better decisions, faster. The prepackaged apps enable users to reap value from the solution immediately.
- Speed — Revolutionary next-generation Pace technology delivers unprecedented speed and processing power. Users can perform high-speed data manipulations and calculations to gain the information they need.
- Self-service — Users can download prepackaged apps or create their own custom apps. Analytics are no longer the domain of the IT department.
- Mobile first — Commodity Analytics Cloud was designed with a mobile first approach. Instead of adapting a native web or desktop application to be used on mobile devices, the solution was intended for use primarily on mobile devices right from inception.
- Data eco-system — Access data from internal sources such as CTRM, ERP, CRM, and spreadsheets. Plus, external sources such as market curves and weather data.
Learn more about Eka's advanced analytics platform, Commodity Analytics Cloud.