White Papers Commodity Management and ERP | Page 7

Commodity Management and ERP

The strength of SAP commodity pricing is that it is
fully integrated with the SAP standard ERP pricing
and therefore benefits from the increased flexibility
and configurability that this brings. It also supports
index-based and non-indexed based calculations as
well as industry-specific pricing needs across all areas of raw materials and commodities.

A ComTech Advisory Whitepaper

SAP has also worked diligently on the user experience for analytics
and reporting particularly leveraging the SAP Fiori user experience
(UX) and working in design thinking co-innovation with customers to
produce highly consumable and personalized dashboards and reports
that can be accessed across a broad range of devices and provide drilldown capabilities. SAP Commodity Management can offer users superior performance and flexibility as well as innovative reporting and user
interfaces for enhanced productivity.

COMMODITY RISK MANAGEMENT
– SAP Commodity Risk Management supports a
complete range of derivative transactions including
futures, listed options, forwards, swaps and OTC
options which are used in real-time reporting and
analytics. It offers real-time position reporting for
physical commodity documents and derivative transactions and helps users with mark-to-market calculations and reporting. It also supports the capture
and execution of a number of commodity derivatives
with full integration with SAP ERP allowing direct
processing of postings and payments within one
system.

The SAP Commodity Risk Management
offering is both highly configurable and adaptable
in supporting multiple commodities, and other key
attributes. Gaining visibility into key risk metrics is
easy to achieve across a variety of views into the data
by different selection criteria. As a result of the work
SAP has done into the user interface, the results are
available in readily consumable formats and dashboards.

PERFORMANCE AND ANALYTICS
SAP offers its Commodity Management solution
on the SAP HANA in-memory platform to provide
for scintillating performance and allowing real-time
calculation of complex reports such as position and
mark-to-market, for example. It can offer the complete solution in the Cloud via the SAP HANA Enterprise Cloud to enable rapid implementation and
a compelling Total Cost of Ownership. Furthermore,
users can select just the functionality that they require.
© Commodity Technology Advisory LLC, 2014

Figure 3 | SAP Commodity Management Analytics User Interface Example