Enterprise Resource Planning Solution for Commodity Trading and Risk Management

Tech Innovation

Nov 3, 2015

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Commodity Trading and Risk Management are integral aspects of a business for an organization involved in trading and vital cogs with respect to contract administration, shipping, logistics, inventory management, reporting and financial integration. Companies functioning in these domains need to use an ERP Solution that is capable of supporting the full life cycle of commodity contracts. The benefit of using such an ERP is that it makes trading and contract related data readily available in real-time. Also the fact that it comes with a highly advanced in-built risk dashboard makes it possible for employees of the company to get access to real time information regarding the future, contract options, hedging and foreign exchange positions.

The Microsoft Dynamics AX ERP Solution and Microsoft Dynamics CRM Solution are two fine technologies that have helped companies perform better at commodity trading and risk management. Both fall under the Dynamics ERP and CRM suite by Microsoft and have proven competencies. They help address areas like documentation, advanced logistics and compliance.

Given below are some benefits offered by the enterprise resource planning solution in relation to trading:

Contractual tracking from initial booking to invoicing.
Rapid contact entries and administration as a measure to save time.
Spreading a contract over multiple delivery periods.
Pricing adjustments depending on quality.
Creation of strong workflow rules to produce robust shipping documentation.
Site scheduling, load management and movement instructions.
Preparation of a logistics schedule with briefs on route and cost information and movement of goods.
Creating and managing customer centric logistics documents.
Generating invoices on behalf of commodity vendor freight companies.
Management of various currencies.

Commodity Procurement for Manufacturing, similar to Commodity Trading, can be handled exceptionally well with the Dynamics ERP suite which includes the Dynamics AX, the Dynamics NAV and the Microsoft Dynamics CRM Solution.

Everything related with contract administration, shipping, logistics, inventory management and financial integration and reporting is taken care of. Also, the suite makes real-time data accessible and supports the entire life cycle right from start to finish. Through the software, companies involved in this domain of work get both the flexibility and the control to procure successfully and access to all important data which can be leveraged for better communication between various departments and suppliers.

The enterprise resource planning solution helps:

Track contracts spanning their entire life cycle.
Manage risks involved at various stages.
Make data entries to save on crucial time.
Match contracts with daily market prices and evaluations.
Segregate the same across multiple periods of delivery.
Make adjustments on prices.
Generate workflow rules to generate pertinent shipping related documents.
Schedule sites, instruct movements and manage loads.
Schedule logistics with respect to movement of goods, routes and costs incurred in transportation.
Generate and manage invoices on behalf of commodity vendor freight companies.
Handle currencies from all parts of the world.