Commodity Management

Commodity Managementis popularly considered as CTRM Plus ERP, providing a combined features of traditional risk management with business process of ERP. If this was the case then a suitable CTRM system with an ERP would have provided the fully functional Commodity Management system for the commodity business. In reality, Commodity Business needs a specific system to address their complex business needs which is Not Addressed either by a CTRM or ERP or combination of both.

Commodity companies operating at origins managing physical commodity faces complex business challenges. We at Invensoft are working on Commodity Management from year 2003. We have designed specific Commodity Management system to meet the niche and complex requirements of commodity business at origins to manage risks of commodity business right from point from the commodity is procured.

Starting from procurement to shipment commodity goes through series of operations like warehousing, processing or transformation, logistics, trading and hedging. Each one of these operations poses its own challenges and risks. Process control aided with information is the key to mitigate the risks. For example: When commodities in raw form are procured, it is priced based on the moisture, quality and yield of final product. When this raw commodity is processed then the yield of final product should be at lease as expected at procurement or more. Anything less can lead to a loss. Every company would like to look at a PnL showing up the profit or loss between what they procured and produced. Understanding all these risks and needs of controls across the commodity business process, Invensoft have designed Invensoft-XBS© Commodity Management.

Invensoft-XBS© Commodity Management - Configurable, Localized, Out-of-the-box Solution

Invensoft-XBS© Commodity Management popularly known as "XBS" provides extensive features with out of the box localization for Commodity Origin Business, Procurement, Quality Management, Processing, Warehousing, Certification, End-to-End Bi-Directional Traceability, Sustainability Certification, Trading, Hedging, Risk Management, Positions, Exposures, Daily P&L and Reporting.

Successfully deployed in over 12 Agricultural Commodity Origins, XBS provides localized features combined with configurable templates. Available on Cloud as SaaS and on-premise at customers location on demand, XBS can go-live in 4-6 weeks.

  • Procurement & Physical Contract Management
    • QR Code enabled Ticket based commodity receipts with full integration with Weigh Scale.
    • QR Code enabled sample management with Quality Analysis.
    • Configurable Purchase Contract Templates (Flat Price, PTBF and Consignment).
    • Multiple Price Fixations, Provisional and Final Invoice.
    • Automated Purchase Price Calculation with Quality Deductions / Incentive.
    • Delivery Instruction to Vendors.
  • Quality Analysis (QA)
    • Multi-Stage Quality Analysis, be it at Gate, Sample, Intake, In-Warehouse, Before and After Processing, During Stock Transfer and Before Shipment.
    • Innovative User Configurable QA Template to use at every stage.
    • Automated Quality Flagging / Results.
    • Quality Results are integrated to calculate Purchase Price and Vendor Payments.
  • Automated Purchase Price Calculation
    • User definable Purchase Price Templates.
    • Automated Purchase Price Calculation with Discounts or Deductions / Incentive.
    • Deduction / Incentive on Quality claims, Weight Claims and other scenarios.
    • Price Management based on Weight or Value or Both.
    • Manual Over-riding of price, Approvals and Negotiations Recording.
  • Warehousing and Inventory Management
    • User Definable Location Specific Warehouse with configurable User access rights.
    • Three Dimension Warehouse definitions with Zones.
    • User Definable Inventory Types for Own Inventory and 3rd Party Inventory.
    • Stock Transfers: Multiple issues and receipts, Partial transfers, Stock-In-Transit with transit losses/gains.
    • QR Code based Lot Identification in the Warehouse (Optional).
    • User Definable Packing / Storage Type like Bags, Jumbo Bags, Bins, Containers Etc.
    • Palletized Inventory, Bulk, Bags, Big (Jumbo) Bag management.
    • Inventory Management (Two Dimensional) with Weight and Packing Type visibility.
    • Inventory Detail: “Live”, “As on Date” and “Historical date”.
    • Comprehensive Inventory Movement information.
    • Intelligent Certified Commodity Management.
    • Exclusive 3rd Party Stock Management with comprehensive details.
  • 3rd Party Stock Management
    • Comprehensive 3rd Party Stock Management.
    • Consignment Stocks.
    • Job Work management for outsourced Storage, Processing, Packing and Bulking.
    • Inventory marking as 3rd Party with clear identification.
  • Commodity Milling, Processing and Production Management
    • User Definable Process Steps or Stages.
    • Configurable Process Template definition.
    • Multiple Processing Issues and Receipts with WIP (Work-In-Process).
    • Lots can be blocked for a Processing based on Quality Parameters.
    • Yield Analysis – Purchased Yield Vs Produced Yield with Gains / Losses.
    • Intelligent Traceability after Processing, Bulking and Blending.
    • Intelligent Certificate management of Lots after processing.
    • Comprehensive Production Costing and Valuation.
  • Sales Management
    • Comprehensive Sales Sampling Management.
    • Configurable Sales Contract Templates (Flat Price and PTBF).
    • Multiple Shipping Instruction against a Sales Contract.
  • Shipment and Logistics Management
    • QR Code Ticket based commodity shipment with full integration with Weigh Scale.
    • QR Code sample management and tracking.
    • Multiple Price Fixations, Provisional and Final Invoice.
    • Dispatch Note with truck details.
    • Post Shipment Management and BL.
  • Traceability
    • Bi-directional traceability starting from purchase to sales and vice versa.
    • Trace all the lots including those with multiple bulking/blending.
    • Farmer Traceability with every shipment.
  • Futures and Hedging
    • User Definable and Configurable Future Terminal with details.
    • Future Contract Management (Buy and Sell) with Broker Details.
    • Hedging of Physicals with Futures.
    • Hedge and Un-Hedge Position.
  • Financial Management
    • Integrated General Ledger (GL) with User Configurable Chart of Accounts (COA).
    • Comprehensive Cost Management with Cost Accruals.
    • Invoice management: Purchase Invoice, Sales Invoice.
    • Comprehensive Inventory Valuation, Production Costing & Cost of Goods Sold (COGS).
  • Risk Analysis, Position and P and L
    • Risk report on Processing Analysis.
    • Real Time Position Analysis based on Physicals and Futures.
    • Real Time Inventory Valuation, Mark-To-Market, Profit and Loss (P/L) calculation.
    • Realized P&L and Unrealized P&L.
    • Daily P&L on Real Time and Historical.
    • Month End Closure and Monthly P&L freezing.
  • Analytics and Reporting
    • Real Time Stock at a date with Stock In Hand, In-Transit, WIP and 3rd Party Stock details based on Location and Warehouse.
    • Real Time Actual Yield Analysis from Processing.
    • Bi-Directional LOT Traceability (From Purchase to Sale and Vice Versa).
    • Extensive built in Reports with user selection on search criteria, views and filters.
    • All the Reports can be exported to Excel Spreadsheet and PDF.
    • Microsoft Excel Business Intelligence Templates.
  • Interface with ERP, Weigh Scales and Other Systems
    • Readily Available bi-directional data interface with ERPs like SAP, Microsoft AX / Dynamics / Navision.
    • Customizable bi-directional data interface with Oracle Financials, JD Edwards, Location Specific Financial Accounting Systems Etc.
    • Real time interface with instruments and equipment like Weigh Bridge for online weight data pickup.

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