Agricultural Contract Management and Commodities Management
The trading of agricultural commodities is a niche business that has highly specific requirements.W5 can help you accelerate your business solutions and establish precise and effective contract management for your agricultural commodities
Spot markets still govern nearly 60% of the value of agricultural production and remain an efficient way to produce and distribute many products.
— United States Department of Agriculture
The trading of agricultural commodities, such as wheat, corn, soybeans, and coffee, is a niche business that has highly specific requirements.
W5 are experts in modernized agriculture management solutions with SAP. We provide best practice solution paths using SAP S/4HANA components to perfectly fit your business needs. Core SAP components your business needs to consider are:
- SAP Core S/4HANA Cloud (EX)
- SAP Agricultural Contract Management (ACM) for S/4HANA
- SAP Cloud Analytics (SAC)
- SAP Transportation Management with Bulk Transportation Management for ACM (being considered)
Commodity traders can have relationships with many counterparties and maintain several contracts with each one. The terms and pricing data in an agricultural commodity contract can be highly complex and include pricing adjustments based on quality factors. In addition, the contract execution can involve both planned and unplanned deliveries, which must be recorded and assigned to one or more contracts. Finally, the contract settlement process must handle prepayments, reassignments, quality-based pricing, tolerances, and optionalities. SAP Agricultural Contract Management enables commodity traders to capture and manage these complex commodity contracts. It is an end-to-end solution that supports the full contract life-cycle, including the capture of the contract terms, the logistical processing, and the final settlement and closure.
SAP Agricultural Contract Management supports the following commodity contract scenarios:
- Third-Party Purchase
- Third-Party Sale
- Intercompany
- Intracompany
- Back-to-Back
- Spot Purchase
- Commingled Stock
- Washout (including the Circle variation)
W5 will quickly get you up and running on SAP S/4HANA®, SAP® Commodity Management, and SAP Commodity Risk Management
- Optimize business performance with a proven technology
- Enable your team with real-time, impactful, and accurate information
- Deliver improved logistics, better financial execution, and overall organizational efficiencies while laying the foundation for end-to-end business intelligence
W5 will quickly get you up and running on SAP S/4HANA®, SAP® Commodity Management, and SAP Commodity Risk Management, setting the stage for:
- Direct flow of financial data from SAP S/4HANA to central SAP ERP Financials solution.
- Cash requests that can be made directly from the bank and reported on in real time.
- Real-time, cross-terminal reporting on inventory, sales, invoicing, billing, dunning, profit and loss, and more.
Greater transparency into commodity data with sophisticated analytics, dashboards, and reports. - Commodity supply chain planning based on existing product structures and current inventory levels, increasing visibility, traceability, and compliance.
- Full transparency of risk positions across marketers, terminal operators, and risk managers.
- Simpler deal capture for contracts with SAP Commodity Management, option for deal capture for SAP S/4HANA.
- Ability to schedule shipments while taking into account supply, demand, and available transportation with the SAP Trader’s and Scheduler’s Workbench application.
- Self-service reporting, real-time data visualization, and eventual mobile enablement with the SAP Fiori® user experience and apps – enabling greater business ownership and less reliance on I.T.
- Blueprint for similar process architecture and deployment projects at other group companies.
Here's who we've helped
BLUEPRINT FOR ERP INTEGRATION
In 6 months, W5 Consulting helps transform a small oil company into a model for intelligent enterprise integration.