Commodity Management Solutions from SAP: Overview Video

Discover how commodity management solutions from SAP deliver real-time insights to help you improve your commodity position. Effective commodity management has never been more crucial to your company’s profitability.

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    • Commodity management solutions from SAP: optimize commodity pricing and manage commodity risk.
    • Effective commodity management has never been more crucial to your profitability.
    • You need to get the best commodity pricing whether you buy, sell, or do both. And you need to manage your overall commodity risk.
    • That’s why you need commodity management solutions from SAP.
    • Commodities are increasingly affected by price volatility, risk management, and regulations.
    • The supply and demand characteristics of commodities are now driven from a global perspective.
    • Economic factors such as emerging markets and weather events can have a huge impact on worldwide prices.
    • Increasing expansion of global commodity trading only adds to price volatility.
    • At the same time, management of commodity risk has reached the highest levels of executive oversight.
    • Many companies have implemented formal risk policies to closely monitor their commodity activities.
    • Expanding mandates such as Sarbanes-Oxley and the European Market Infrastructure Regulation mean companies have to tighten internal controls and enhance reporting capabilities.
    • While constantly changing accounting requirements only add to the regulatory hurdles.
    • It’s no wonder the best-run businesses are turning to commodity management solutions from SAP.
    • Commodity management solutions from SAP give you clear insights into your commodity position.
    • You benefit from a single version of the truth, supporting an environment of collaborative planning and management.
    • Commodity management solutions from SAP comprise three powerful applications: SAP Commodity Procurement, SAP Commodity Sales, and SAP Commodity Risk Management.
    • These applications empower you to manage commodity risk through integrated processes that are designed to meet your unique needs.
    • You get the tools you need to perform timely and profitable buying, selling, and hedging.
    • You can capture commodity contracts with price definitions based on market prices, along with industry-standard quality and quantity conditions.
    • Replace complex manual processes with automated price calculation. Ensure accurate cash flows for payables and receivables. Directly integrate key commodity-based activities.
    • And establish a foundation for risk-relevant hedging and risk management.
    • What’s more, a commodity pricing engine lets you create commodity contracts with price definitions based on specific terms and conditions, quantity measurements and tracking, quality adjustments, and market-based pricing.
    • The pricing engine replicates the pricing conditions in the contract, using detailed formulas to calculate the accurate price.
    • The process then creates payables and receivables in agreement with contracts.
    • The solution tracks the transaction to final settlement with a set of rules and conditions that must be completed before final invoicing takes place.
    • The SAP Commodity Procurement application improves the efficiency and accuracy of how you procure commodities.
    • The SAP Commodity Sales application provides a foundation for the comprehensive settlement processes needed to sell commodities and related products.
    • In both applications, extended ERP functionality automates your end-to-end procurement and sales processes.
    • Allowing for advanced commodity pricing on contracts and support for provisional, differential, and final invoices.
    • Integration with treasury allows you to transfer accurate commodity-exposure positions to your risk-management group in real time to enable effective hedging.
    • The SAP Commodity Risk Management application lets you assess the price risk embedded in your commodity positions and process the financial transactions used to hedge that risk.
    • You can generate comprehensive reports of your commodity portfolio to manage your company’s businesses, while supporting hedge accounting for derivatives.
    • So you get the information you need to evaluate and execute the appropriate hedge for your company.
    • Commodity management solutions from SAP optimize commodity procurement, sales, and risk management.
    • The solutions deliver a 360-degree view into commodity risk across your lines of business.
    • So you can respond quickly to market changes and effectively manage commodity risk.
    • With commodity management solutions from SAP, you have the capabilities you need to gain real-time insights into your commodity positions.
    • And create and maintain an environment of collaborative planning and management.
    • Find out today how commodity management solutions from SAP can benefit you.
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