Commodity Management Blog

Innovative Ideas and Thought Leadership for Volatile Commodity Marketplace

CommodityPoint, an independent analyst firm, issued a research report studying the integration risk between CTRM and ERP systems.  The paper does a good job of capturing the issue:

“The point is simply that just from a cost and effort point of view, any interface or point of integration including between the CTRM software and accounting software or an ERP solution is risky, costly and time consuming and this ignores other aspects of integration risk such as the inability to deploy proper workflow and controls across the application suite; the need for manual reconciliations, maintaining the same data (e.g. contract data)…

The United Nations Conference on Trade and Development (UNCTAD) estimates that the shipping industry transported over 7.7 thousand million tons of cargo, equivalent to a total volume of world trade by sea of over 32 thousand billion ton-miles. However, managing complex cargo movements of crude and bulk commodities — across pipelines, storage facilities and vessels — remains a very manual and often disjointed process.

I recently had the chance to sit down and talk with Patrick Rooney, President and CEO of Navarik, to discuss how a cargo inspection solution can help reduce operational risk and increase straight-through processing.

IASB and FASB Convergence

The International Accounting Standards Board and its U.S. counterpart the Financial Accounting Standards Board have been talking about compatible standards for years.  As companies increasingly become global entities, disparate accounting standards complicate things for both corporations and investors. As it currently stands, a U.S. subsidiary of a foreign corporation is essentially running two sets of financial disclosures, one according to U.S. GAAP (Generally Accepted Accounting Principles) and one according to IFRS (International Financial Reporting Standards). The benefits of applying a single standard should be obvious in terms of cost and clarity. Both boards recognize this, and…

As the annual International Petroleum (IP) Week gets underway for the second day, the city is buzzing with busy bees. Commodity management teams specializing in energy and beyond are striding through London trying to meet their heavy schedules from breakfast meetings to cocktail parties and other events in between exchanging ideas, experiences and views. As these conversations flow they carry with them an obvious focus of having a beneficial impact on the bottom line and sustaining healthy relationships, but there is always enough room for sidebar conversation about news.

One topic that has prevailed this year is…

TheStreet took a look at the effect of rising commodity prices on ten food companies.  The companies reviewed were Hershey, Kraft Foods, McDonald’s, Starbucks, Kellogg, Sara Lee, Panera Bread, J.M. Smucker, PepsiCo, Chipotle Mexican Grill (read the article).

I have 3 take-aways from the article:

1. This is a long-term issue

“Food inflation – from corn and cocoa to sugar and wheat –  is an increasingly important global issue and unlikely to go away anytime soon.”“The growing middle class in China and India where demand for beef and vegetable-based proteins grew disproportionately to demand for grain-based diets. Converting soft…

Are you prepared for the sweeping regulatory changes brought on by the Financial Reform Bill? The new financial reform law is not isolated to just banks and will dramatically alter the landscape of energy and commodity trading and hedging.

Triple Point recently hosted a webinar on the Dodd-Frank Act and what you can do now to prepare for the new regulatory requirements.  In case you missed you live webinar, here is a link to download the webinar and view at your convenience.

In this webinar, Michel Zadoroznyj, Vice President of Product Center, Treasury and Regulatory Compliance…

Spot trading in Europe’s flagship emissions trading scheme (EU ETS) recently ground to a halt, following the theft of 2m Allowances from the Austrian, Czech and Greek National Registries. Valued at around €30m, this theft is the latest in the series of embarrasments for the European Union, following on from a theft of 1.6m Allowances from the Romanian Registry last year. It appears that the thieves managed to acquires the Account passwords of legitimate users and effect transfers to Accounts of their own choosing.  To make matters worse, the EC was aware of an imminent hacking threat, but didn’t order…

Credit departments manage billions of dollars of capital and provide a system of checks and balances on company risk, but are chronically under funded and lack regulatory support to provide proper oversight.  In the rush to make a quick buck, organizations often fail to invest the time and energy they should to constantly re-evaluate the strength of their policies and procedures and ultimately conduct business in a way that ensures long-term prudence and prosperity.  Even with recent financial reform regulatory actions under the Dodd-Frank act, no person, department or governmental compliance effort can totally prevent all errors, misrepresentations, or deceptions.…

Add clothing retailers and manufacturers to the list, along with Consumer Packaged (CP) companies and Industrial Manufacturers, of organizations that are having operating margins squeezed by rising and volatile raw material prices.

It’s become crystal clear that the commodity bull market is negatively affecting the bottom line of all companies that produce, process, transport (energy costs) or sell a physical product.  The exception, of course, are the companies that own the raw material in the ground – now their bottom lines are being affected but not in a way that would make management or investors unhappy.

The rapid rise in…

Beluga Shipping GmbH licensed Triple Point’s flagship chartering and vessel operations software to profitably manage all pre- and post-fixture activities of its heavy-lift transport operations.

Beluga Group provides a full range of customized transport solutions including shipping, chartering, and fleet management operations. Beluga Group is the worldwide leader in the heavy-lift shipping segment and operates a modern fleet of 72 multipurpose heavy-lift project carriers, equipped to lift a combinable load of up to 1400 tons. The company is based in the Hanseatic city of Bremen, Germany and serves targeted industry sectors including oil and gas, refining,…

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