Assay management is a crucial and complex aspect of metals trading. Concentrates in particular depend heavily on properly managing assays, and in the commodity management/CTRM space, concentrates are recognised as one of the most challenging commodities for software to support. Premiums, discounts and penalties for each element within the ore need to be correctly factored…
At Gen10 we frequently discuss the importance of ensuring your commodity management software has the flexibility to support your business. An important, but often overlooked, part of this flexibility lies in training and implementation. After all, if your people’s first impression of a new CTRM system is being forced to learn rigid processes that don’t reflect how they actually work, then engagement, proficiency and productivity will all suffer.
A lack of market flexibility has led to high spot prices and volatility across regions, and although spot demand is high in Europe, spot liquidity is currently concentrated in Asia. And given that vessels delivering to Asia in February may not be ready to pick up cargo in early March, European stocks may remain low into the warmer weather. With fewer options available, LNG producers, traders and buyers need access to more information than ever to ensure they are making the right decisions.
Systems integration that creates a unified software ecosystem also unifies operating procedures and can go a long way towards creating a more collaborative mindset too. There are many ways this software integration can be achieved, from adding connections between existing systems to rolling out the best commodity management software to all business areas.
SaaS stands for Software as a Service; it is a delivery and licencing model that allows users to access their software over the Internet. A SaaS CTRM is a software application where users access their commodity trading risk management, or broader commodity management, through their web browser. SaaS software usually has a very different pricing model to older software applications.
For too many years, CTRM systems have been seen by traders as more of an administrative task that complicates workloads than as a tool that can speed up processes, manage risk and ultimately improve trading margins.
In the last few years, there has been a growing awareness amongst commodity traders that technology can do more to support their work than these legacy systems allow. A growing number of commodity traders are now discovering that modern CTRM technology can do far more for trading teams than the legacy systems whose limitations they are used to.
Agility has become necessary for survival in commodities. During the lockdowns triggered by the Covid-19 pandemic it enabled teams to keep the business moving whilst working remotely. Even when we return to less volatile times, this new-found agility can create a significant advantage to businesses. It allows them to move quickly; seizing new opportunities and finding new ways to add value by constantly learning, adapting and growing.
To support these agile outcomes, commodity traders and other organisations need to ensure their systems are also agile, particularly core commodity management and CTRM systems. If your digital processes are rigid and inflexible, they can impede or negate the advantages of the agile environment created in the physical world.
2020 was a year of rapid change in the commodities industry. CTRM systems will need to adapt to keep pace with these market changes or risk becoming obsolete. We explore 7 ways all CTRM systems will need to prove they have modernised if they are to continue meeting their clients’ expectations.
