CTRM for Ags & Softs
Introduction and Scope of Research
The CTRM software space for agricultural and soft commodities is currently characterized by the existence of many software vendors and products that are largely dominant only in a specific niche market , such as a particular geographic region and / or for a particular commodity . Commodity Technology Advisory ( ComTech ) can identify at least 34potential vendors with products in the space that fit this description ; and to that end , it is reminiscent of the ETRM software category a decade or so ago , prior to all of the merger and acquisition activities , that has resulted in some consolidation there .
The scope of this research project was to identify and characterize the Commodity Trading & Risk Management ( CTRM ) products in the agricultural and softs space , identify the key markets and software requirements needed by those markets , and comment upon perceptions of the vendors and products targeting those markets .
Furthermore , several trends have emerged in the agricultural and softs application software space that this research investigated in a little more detail . The first of these trends is around “ commodity management ” (“ CM ”), the extension of CTRM software into aspects of what has traditionally been covered either byERP solutions or in combination with ERP and specific point solutions covering a unique facility or process . However , with the growing presence of commodity management solutions , there is an increasing overlap in parts of the market as ERP solutions are extending into trading and risk management , and CTRM products are being extended into ERP , particularly in commodities that have a long and complex supply chain . This research reviews this trend , including the vendors and products in the space .
The second trend is the growing importance of non-quoted commodity trading and of the availability of software to address these markets . Anecdotally , it appears that accounting solutions and / or spreadsheets have been used in the past to manage these less structured commodities rather than CTRM solutions ; however , as the supply chain becomes increasingly important , and with the growing impact of regulations , there does appear to be a trend towards affordable CTRM solutions in this part of the industry .
Finally , there has been a penchant for homegrown solutions as well in these markets , especially in the top tier . What has driven this , and is it a continuing trend ?
This research was conducted in a number of different ways including : 1 . Web-based surveys and questionnaires targeted to software users and other participants 2 . Interviews with key users and influencers 3 . Basic research into market segmentation , and industry and technology trends that will impact market development and product adoption in the future
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