A commodity trading and risk management solution provides a number of features and functions specialized for commodity traders and purchasers. Agiblocks integrates all these essential functions in one solution to streamline the daily operations of buyers, sellers and traders alike. The integrated strength of Agiblocks CTRM allows you to benefit from single data entry of purchase or sale contracts, where data flows to risk management, logistic execution and finance. Let’s talk flexibility of integrated physical trading and more!
Agiblocks allows multiple deliveries in one contract where each delivery can be managed separately regarding pricing, hedging and the actual delivery. For commodity trade, that kind of flexibility is crucial to respond and administrate in all market circumstances and changing requirements of clients – not to mention when dealing with uncertainties, from the micro- to the geopolitical level in our global economy. Which is why Agiblocks also supports multi contract lines which can have their own multiple delivery structure.
Deliveries and pricing mechanisms are a huge part of the commodity trade, from the specifics of multiple deliveries and the handling of ‘priced’ (outright) versus ‘unpriced’ (to be fixed). For instance, it is very common that a purchase or sales contract has multiple deliveries. A deal covering 120 metric tons of cocoa beans can be split up into six deliveries of 20 metric tons, spread out over time. Each delivery can be priced differently, valued differently, and even be split again. Each delivery can be separately hedged or delivered, or even partial priced, either flat or using futures.
If you’d like to get into it some more, Agiblocks tutorial 1.3 has an example of a physical cocoa contract with two separate deliveries in different months.
Agiblocks helps to optimize end-to-end delivery – concrete examples being the intelligent splitting of deliveries on a contract –, but Agiblocks also supports automatic hedge requirements, or gives the user an easy view on how to allocate the best purchase to a sale.
Logistics allocation in Agiblocks allows many-to-many, where hub facilities have to be located and customers with pickup or delivery demands have to be combined in routes. Partial purchases can be combined with inventory for the most perfect shipment.
Contract and risk management are key components in commodity trade, but physical commodities need to move from A to B. In Agiblocks, all logistic functions are represented by the light blue blocks in the main dashboard. One of those is Reservations, where you can find allocation variables – such as purchase, inventory and floating, as well as sales, storage and destination. It all comes down to making a logistical planning: which (and how much) commodity will you deliver to a certain sales obligation. The Reservation block has many convenient filters, which allows you to quickly find the commodities you are looking for, while filters will automatically adapt to the correct parameters.
Deliveries and transports are automatically managed from these allocations and Agiblocks can generate shipment instructions with its build-in document generator. Invoices can be directly generated from out of the logistics execution, which can be commercial invoices, pro forma, provisional or partial invoices. Cost estimate functionality at contract entry provides a direct insight in unrealized P&L, where Agiblocks supports actual incoming invoices to be allocated against these accruals, and realized P&L is available.
Agiblocks is a fully integrated CTRM solution where the real benefit is visible in the position, market to market, profit and loss and delivery screen because it combines all these flexibilities, whether these are some of the aforementioned features or the many additional ones, such as foreign exchange, transport management, rolling’s, samples or inventory.
At Agiboo, we imagined a world where you can trade with just a single click. Agiblocks, the next generation of CTRM software solutions, has given meaning to this vision with its integrated physical contract and risk management, logistics, deliveries, transport and finance functionality all wrapped into one easily accessible tool – powerful and agile and ready to meet the requirements of your business.