The Pain Points

Those Commodity/Energy Trading Companies are Suffering

Mostly manual processes: Lack of controls, monitoring and pro-active management. Duplicated work and human error occur Distributed data: Difficult to get timely and accurate consolidated information across products and geographies Risk Management: No automation, real time measurement and visibility into positions, exposures and risk Regulatory or People Change: Sometimes has to re-organize the whole manual flow and re-train the people

For Traders

Trades are manually captured, managed and settled. Lack of visibility into positions, exposures and PNL. No pro-active credit risk management. Lack of risk controls in terms of trading limits etc.

For Operation

Lack of visibility into status of trades Lack of prompt trade settlement. Lack of visibility into transport Profit and Loss. Difficult to track adjustments for quality, quantity, charges and demurrage

For Risk And Finance

Lack of visibility on exposures, PNL, and limits. Lack of price and curve management. Lack of analytics on Realized and Unrealized PNL. Outstanding analysis and Aging

CTRM Helps You

To Solve the Problems That ERPs DON’T Solve

ERP is a general management software for all industries. It manages finance and production very well, but cannot handle specific commodity trading requirements.

Functionality Commodity/Energy Trading Requirements ERP Capability
Physical Contract Management Flexible Pricing Mechanism including Fixed Price, Provisional Price, Basis Price, Exchange Price, Index Price, Formula Price, Staggered Price… @Create Physical Contract with Fixed Price only
Price Auto Calculation NO
Contract Matching NO
Split Contract NO
Paper Settlement NO
Flexible Quality Adjustment including tier based and formula based NO
Derivatives Management Manage Derivative Contracts and Paper Position NO
Hedging Management Hedge Physical with Derivatives NO
Risk Management Mark to Market NO
Real-Time Exposure NO
Real-Time PnL NO
Inventory Management Forward Inventory, Negative Inventory NO
Transportation Management Track Voyage, Loading, Discharge, Shipping Events and Dates NO