Let’s assume you are a commodity trader in Brazil and close a deal with a Japanese customer. With goods located in Vietnam and have to ship to Japan and now, the Japanese resell them to a client elsewhere in the world at a different price. While this is happening, the currency in one of these countries increases by .03%. Since the contract prices are in US dollars and Yen, the company now incurs a currency risk. How can you make this simple? With an increasingly less time-to-market and a volatile market, insight into the commodity trading process is critical; companies should have the right software for trading, inventory management, and finance, process transparency, reduce and manage trading uncertainties while being highly scalable.
‘ERP solutions can’t manage Commodities?’ or ‘With ERP, We would still need integrated commodity management solution?’ are questions often asked and said.
With the emergence of AI, blockchain, and Big data, it has become all more important to have ERP + CMS solution on the cloud, which is secure and can cater to large to medium and small scale commodity enterprises. With this vision, BaffleSol came with a resolution that is both a trade management solution and has all ERP functions, including contract management, procurement, production, logistics, inventory management, assays/chemical analysis, pricing & fixation, hedging, settlements, and accounting. This solution offers the necessary support for all of the various departments’ business processes by providing real-time insights on trading, logistics, and finance. Now since all the data is stored in one system, users can retrieve the information from the system that they find essential by using integrated Power app modules or reporting tools, with management able to view graphical reports and dashboards to make better business decisions. While in traditional CMS systems that are not integrated with ERP, users must manually combine all of the various information, increasing the complete trading process’s timeframe.
While CMSs that have ERP integration possess the risk of having incomplete workflows, maintaining the same data at multiple places, manual reconciliation, and not forget the cost, time, and effort involved in the complete integration project.
This is where BaffleSol’s Commodity Solution can add significant value by providing a single software backed by Microsoft Dynamics that could provide all the above functionality in a single package. It offers support to multisite, multi-currency, and multi-language options. The system can adapt to local laws and regulations and local payment systems with modules like financial management, CRM, HRM, order management, logistics, procurement, projects, sales, service, asset management, Forex & Futures, and Supply Chain and Cost Management.
The world of commodity trade is changing and remains competitive and profitable; business processes need to be supported by automated and scalable systems. Departments must work together efficiently and have real-time insight into the contracts, costs, margins, trade positions, logistics performance, and key financial figures. Besides, laws are becoming more strict, and the need for professional reporting increases, making the need for a “Next Step” solution in combination with Power BI reporting.
For more information about this solution, visit: https://www.bafflesol.com/commodity-management-solution