What is SAP Ctrm?
In an industry first, SAP has combined Commodity Training and Risk Management (CTRM) and Enterprise Resource Planning (ERP) functions into a single, integrated platform. This provides commodities-driven organizations end-to-end enterprise clarity and unprecedented capabilities to optimize their full value chain.
What is commodity management in procurement?
Commodity Management is the process of developing a systematic approach to the entire usage cycle for a group of items. The term is often used interchangeably with Category Management. Supplier Relationship Management. Procurement.
What is SAP Commodity Management?
The SAP Commodity Management solution allows managing the production and commercial processes related with raw materials including 3 key aspects: price volatility, risk management (identification and coverage through financial derivatives in order to mitigate them) and management of the regulatory and legal compliance.
What does a commodity manager do?
Also referred to as procurement managers, commodity managers oversee the purchase of commodities to assist a company’s supply chain. Their main duties include procuring supplies from vendors, evaluating market conditions to mitigate risks, and supervising department personnel.
What is the difference between Commodity Management and category management?
Commodity Managers would be buying the products and materials selected by Customers or Product Development teams. Category Management was unequivocally aligned with the Chief Merchant. The Logistics and Distribution organizations were aligned with Supply Chain.
What are the types of commodity?
There are four main types of commodities.
- Agricultural products: Soft commodities. They include crops like coffee, corn, wheat, soybeans, cotton, and lumber.
- Livestock and meat: Soft commodities. They include live cattle, beef, pork bellies, and milk.
- Energy products: Hard commodities.
- Metals: Hard commodities.
What are the types of commodities?
There are several commodities available. Energy products include crude oil, natural gas, and gasoline. Precious metals include gold, silver, and platinum. Agricultural products include wheat, corn, soybeans, and livestock.
What is commodity pricing SAP?
Commodity Pricing Engine (CPE) is a tool for calculating the prices of commodities. It retrieves pricing formulas in business documents and evaluates them to calculate final prices of commodities. The resulting price is then transferred to the condition types that are used in commodity pricing.
How do I become a commodity manager?
Academic requirements for this career include a bachelor’s degree in business, economics, or finance. Some employers seek commodity managers with a degree in supply chain management, while others consider job applicants who have a bachelor’s degree in another subject and previous experience in their industry.
What makes a good commodity manager?
Commodity Manager Requirements: Solid knowledge of financial markets that influence commodity prices. Experience working with commodity trading and risk management software, such as iRely and Allegro. Good negotiation skills and the ability to communicate effectively with vendors and suppliers.
What is commodity plan?
A commodity strategy is the purchasing plan for a specific product or service (commodities) that facilitates the management of the supplier base, avoids and/or proactively solves potential problems, and is the basis of future Postal Service business practices surrounding a purchase of the commodity involved.
What is “commodity management?
“Commodity Management” may also be referred to as Category Management, Strategic Procurement or Merchant Management for instance. I use the term Commodity Management to represent the strategic procurement of materials regardless of what specific industry or company vernacular you may use.
Do you need a commodity management team?
First and foremost you need a Commodity Management team that can create the strategies for the specific Commodities that each individual manages. If some of your Commodity Managers are not experienced in developing a strategy it is their Management’s responsibility to help them out.
When we introduced ourselves as “commodity management” the executive took exception?
When we introduced ourselves as “Commodity Management” the Executive took exception to his goods being referred to as “Commodities”. He was very proud of the products that his company provided and he took the term “Commodity” to demean the uniqueness and significance of the product he was selling.
How do you monitor the quality of your commodities?
Monitor quality of the commodity through the use of sampling at defined points and generate reports on-demand. Interactive Dashboards allow further insights into data collected. Invoices can be automatically generated from delivery information and made available to authorised users on demand.