Industries dealing with raw materials and commodities face challenges in managing logistics, trading, and risk in today’s increasingly unpredictable consumer market. 

SAP Commodity Management is a comprehensive solution tailored to address these complexities, offering an extensive set of tools that mitigate risks, streamline operations, and enhance decision-making capabilities.

Read on to learn more about the SAP Commodity Management solution and how our expert SAP consulting services can help you maximize your SAP investment.

What is SAP Commodity Management?

SAP Commodity Management is a solution created within the SAP ecosystem to help businesses manage risk management and commodity pricing processes. It benefits industries that manufacture, manage, and exchange raw materials and commodities, such as gas and oil, mining, and agriculture.

Using SAP Commodity Management allows users to analyze and manage critical business performance metrics and improve the customer experience.

  • Boost quality across commodity sales, procurement, and risk management processes
  • Gain a comprehensive view of commodity positions in real-time across lines of business
  • Automate sales and procurement procedures to save time and reduce errors
  • Integrate and adapt processes to align with current best practices and prevailing market conditions

Top Benefits of SAP Commodity Management

Improved management of complex sales experiences

Handle intricate sales processes for commodities or commodity-based products with enhanced efficiency.

Proactive management of price risk exposure

Identify, evaluate, and manage commodity price risk exposures more accurately within core business operations.

Quick, effective commodity procurement

Expedite, streamline, and manage the entire commodity buying process by leveraging industry best practices and expertise.

Financial stability through exact insights

Assist brokers in attaining financial stability by automating the comparison and reconciliation of accurate derivative positions.

Features of SAP Commodity Management

SAP Commodity Sales

  • Exact invoicing calculations to reduce revenue loss
  • Sales agreements using market-based price quotations
  • Automatic creation of provisional, differential, and final invoices
  • Unified and auditable data for total transparency
  • Streamlined price calculations for time-saving and enhanced accuracy

SAP Commodity Procurement

  • Simulation of invoices and digital posting of concise purchase receipts
  • Purchasing agreements that leverage market-based price quotes
  • Unified data management for a comprehensive audit trail
  • Automated price calculations to remove out-of-system calculations

SAP Broker Reconciliation for Commodity Derivatives

  • Utilization of a standardized cloud-based solution enabling quick, effective, and exact reconciliation of commodity trades and positions
  • Streamlined reconciliation procedures for investigating and addressing discrepancies with reduced human involvement
  • Effective detection of missing and false trades and positions to lower commodity risk exposure

SAP Commodity Risk Management

  • Access to up-to-date accounting regulations to ensure legal compliance
  • Effective handling of market risk due to commodity price volatility
  • Instant access to unified physical and financial commodity positions
  • Simplified treasury procedures with reduced resource demands
  • Unified data providing a comprehensive audit trail

How We Can Help

Whether you need help navigating complex integrations or implementations or just getting started on your journey with SAP, Surety Systems can help.

Our senior-level, US-based SAP consultants have the functional expertise and experience to guide your team through implementation or integration projects and drive continuous improvement.

Contact Us

If you’re interested in learning more about SAP Commodity Management and how our senior-level SAP consulting services can help you maximize your investment, contact us today.