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 |