Agricultural Technologies
5 MAIN BENEFITS OF MODERN CTRM FOR AGRICULTURE INDUSTRY
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ommodity traders in agriculture companies face these 5 main business challenges: 1. Cash management 2. Risk/hedging effectiveness 3. Operational/supply chain efficiencies 4. Accurate & timely market intelligence 5. Regulatory compliance Limitations of traditional commodity management: Using monolithic CTRM systems results in data-siloes with no real-time connection between procurement, logistics and commodity trading. Manually inputting data into spreadsheets takes a long time and often results
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in errors due to human mistakes. With spreadsheets you don't get real-time insights which inhibit you from making on the spot decisions based on market changes. Capabilities of modern CTRM: Modern CTRM aggregates data from systems across the value chain including CTRM, ERP, accounting and spreadsheets. You can analyze the impact of dynamic market movements quickly, identify areas of opportunity or concern, and plan the next steps accordingly. It uses latest analytics tools, including AI and machine learning.
How modern CTRM benefits agriculture industry: 1. Easier cash flow management - Using all available information about payments – both current and historical data – you can analyze payment history and behavior patterns to determine estimated payment dates. You can predict projected cash flow based on payment terms and analyze
November-December 2020
