Successful trading companies need immediate access to accurate and up to date information related to their contracts, logistics and risk positions. In the fast and ever changing world of commodities, there is a basic need for online managing and monitoring positions, integrated in the ERP-system.

Facing the industry challenges on raw material positions

Position monitor - VAR calculations - Mark to market reports

Do I have access to raw materials? How to ensure that my short and long positions are in the right balance? What are the strong and weak points of my raw material positions? Traders have a lot of questions on how their contract position is related to market prices, how their value at risk (VAR) is evolving and how to handle integrated currency hedging. 

To find the right answer to these questions, Adifo has developed a commodity and risk management module in its MILAS ERP solution. The commodity position monitors and risk dashboards give you the information at the right time and in the correct format. By integrating data across your enterprise (such as purchase contracts, sales contracts, futures, options, inventory data) and delivering self-service reporting and analyses, IT spends less time responding to requests. As business users spend less time looking for information, more time is left to make deliberate decisions.

Estimated margin vs realized margin

Adifo’s ERP solution offers the following benefits for traders:

  • More competitive raw material sourcing
  • Higher efficiency and information
  • Improved and faster daily risk management and business decisions
  • Improved speed and agility
  • Better management of price risks in the ERP
  • Choose the best available futures contract portfolio to fit the company needs
  • Develop hedging strategies to ensure greater control over physical positions and margins