Multi-commodity ETRM ’ s are becoming too expensive A ComTechAdvisory Whitepaper
As a result , ComTech is seeing more procurement of commodity-specific ETRM and CTRM solutions to address the increasingly specific needs of different parts of the business . Of course , this shift in appetite to commodity-specific solutions does require a different approach for cross commodity reporting and reconciliation - business processes that can be performed either in the ERP system or via a reporting overlay . Despite the potential costs or process changes required for such aggregations and reconciliations , the benefits of having commodity-specific capabilities that best fit business requirements more than outweighs these considerations .
Recently conducted research into how users saw their current ETRM solutions only serves to emphasize the above . While most ETRM ’ s are seen to have adequate trading and risk functionality , other important functions like scheduling , contract modeling and accounting are less than adequate . More importantly , the ability of these solutions to meet new requirements is ranked very low ( Figure 2 ). It is this difficulty in staying a pace of a flood of changes in the industry that is a real challenge for ETRM .
Figure 2 : 125 Global Respondents Rank the Functions of their current ETRM solution
Increasing Importance
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As set Performance Modeling & and Real-Time
Optimization Capabi liti es
Credit Risk
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Ad ap tabili ty Compliance & to New Repo rting
Requ irements
Accountin g
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Con trac t Model ing |
Sched ulin g |
Repo rting Capabi liti es |
Market Risk |
Valuation |
Efficient Deal |
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Entry |
Effective Pos itio n
Management
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Sometimes , the frustrations faced by buyers has resulted in efforts to build internally . In 2015 4 , ComTech found that 70 % of all CTRM software procurers would likely consider the development of a custom solution while a third of all respondents said that they would seriously consider this option . Amongst the most popular reasons cited for wanting to build a CTRM internally were to have total control over functionality and to avoid generic functionality . However , the same respondents cited the cost and complexity of building their own solution as barriers to doing so and were also , not unsurprisingly , extremely concerned about maintaining a custom developed solution .
While once the future appeared to be about a single monolithic solution , perhaps even custom developed ,
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E / CTRM Software – To Build or Buy . That is the Question , Commodity Technology Research Report , 2015 © Commodity Technology Advisory LLC , 2018 , All Rights Reserved .