Many CTRM vendors have tried to create what we often refer to as the ‘all singing, all dancing’ CTRM solution. Their goal is to create that single CTRM solution that can cater for and meet the requirement of all commodities, both physical and financial, and also meet the needs for all industry segments in energy, metals and soft / agri commodities. However, after more than two decades and numerous attempts to get there, it is probably safe to say that most have failed to develop and bring to market a truly all singing, all dancing CTRM solution. However, new technologies and architectures make this vision ostensibly achievable through the use of an ecosystem of functionally deep vertical and wide horizontal services or applications.
This white paper examines the idea of a single CTRM solution for all commodities and contrasts that with a different approach that some vendors are now pursuing in trying to develop commodity specific CTRMs that offer deep vertical and supply chain functionality.
To download the white paper (it’s free!), click here.
Designing the CTRM or CM that can handle multiple commodities
Most firms that trade, produce or sell commodities have a requirement to support many different commodities. For example, metals smelters may also need to track some form of energy commodity fuel as well as the metal commodities that they deal in, or a food & beverage firm may need to manage multiple agricultural commodities as well as metals and energy for the manufacturing and packaging side of their business. A lot of trading or merchant firms will also trade multiple commodities and groups of commodities. Yet, there are also many firms that specialize in a specific commodity like Coffee or Cocoa, for example. Furthermore, while some will need to manage physical commodities and their supply chains, others will need to only deploy financial commodity management capabilities. It is, of course, this diverse group of prospective firms and industry segments that CTRM and CM vendors are marketing their solutions to.