While productivity is the long-term propeller of economic growth, technological transformation is the major driver for the growth of productivity. Yet, exceptional growth in productivity cannot be seen even as digital technologies boom. Resistance in transitioning towards new technology or being unable to find the right fit for business needs might be the probable causes for the restricted rate.
Talking about the agribusiness, involving trading large volumes of various commodities across continents, CTRM technology has emerged as the most suited innovation to boost productivity.
But how can organizations adopt this technology effectively?
In an industry full of market-specific risks and challenges, effective solutions can be provided by a CTRM solution to enhance the efficiency of business processes and manage external uncertainties easily.
For instance, if you are a large agribusiness based in Toronto, exporting agricultural products to risky and difficult-to-reach markets like Libya, Syria, and Yemen, trading commodities can be challenging, especially when it involves great volumes and transactions, with a significant degree of volatility. It’s even more intimidating to handle a range of commodities across grains, oilseeds, by-products, and specialty crops that service both feed and food markets, grown in one-half of the world and traded in another.
With the operations expanding in almost every continent in the world, the scaling of operations can be a challenging task and even become unmanageable for organizations. So far, the agribusiness in Toronto deployed ERP systems that would break down tackling the exploding load of the growing business. Loss of productivity can be blamed on legacy ERP systems that are unequipped with the market and commodity-specific functionalities. At the end of every month, 5 to 8 days would be required by the agribusiness to close accounting books. Because their ERP system didn’t fully support features specific to trading in North American markets, a sizable portion of work was carried out manually on spreadsheets.
An advanced technological CTRM platform is required by a multi-commodity Canadian agribusiness trading across continents, and many others like it, which can optimize their business processes and eliminate manual redundancies. To make critical business decisions smoothly, a truly global and growing agribusiness needs a CTRM solution that can readily provide access to market-relevant data.
After implementing a CTRM solution, the time to close end-of-month accounting books of the agribusiness was reduced from 8 days to under 15 minutes.
It also eliminated nearly 90% of its manual processes that required spreadsheets. Since CTRM platform enables the agribusiness to bring all the information together in a few clicks, the company now spends less time extracting data manually.
Automation of unnecessary manual processes supported the company with feeding all the relevant information into the application at once and running multiple scenarios across commodities simultaneously and instantly. The company’s traders were enabled to compare more trade opportunities faster. The CTRM platform gave the traders more time to dig deep into results and rapidly analyze which trades were most profitable and why, so they make better decisions on future contracts.
Digitizing manual operations through implementing a CTRM solution not only increased efficiency but guided and increased predictability and profitability as well. Our Toronto-based traders were enabled to increase visibility and enhance the level of agility to respond to changing conditions in a volatile global marketplace since the platform connected business units across the value chain.
As an upshot, by planning and optimizing all aspects of the company’s multimodal logistics network, CTRM aided in increasing the efficiency and reliability in its supply chain. The platform linked Internal Movement Order (IMO) with Sales Movement Order (SMO), tagging respective sales orders with modes of transport and providing superior visibility into stock movement. Through this enhanced capability, the company was also able to tackle a common challenge in bulk transportation where businesses often incur additional terminal costs and delays by optimizing its stock adjustment activities while transloading.
Another important aspect of commodity trading as an agribusiness is vessel management. An integrated CTRM system enables traders, logistics, and finance people to look at the real-time status of shipments. complete visibility into the movement of international stock shipments is provided by configuration of Planned Container Shipment (PCS) and Planned Bulk Shipment (PBS) solutions to the CTRM platform. This includes end-to-end vessel tracking, enhanced collaboration, and workflow management.
The agribusiness increased efficiency in PBS executions by 65% and PCS shipments by 50%. optimal productivity at all stages of business was ensured by deploying a comprehensive CTRM suite of solutions.
Leveraging these applications of an adaptive CTRM suite, the company no longer manually extracts invoices from the system and emails them to finance for payment. The system sends automated alerts to finance on payments to be made, thereby enabling better internal controls.
Escaping the shadows of an obsolete system, today, the Toronto-based agribusiness benefits from improved workflows and activity management. utilizing CTRM solutions which are quickly becoming crucial for agribusinesses worldwide, It shall continue to drive considerable gains in productivity and profitability.
Robo-Commodity software solutions is a global leader in providing digital commodity management solutions for the agriculture industry, driven by cloud, and analytics, helping the companies in boosting productivity.