Only Procurement Solution Delivering Real-time, Market-based Commodity Risk Management
Triple Point Technology, the leading global provider of on-premise and in-cloud Commodity Management software, announced today the availability of Commodity XL Strategic Planning and Procurement™ (SPP), the only software solution that provides sophisticated cost models and advanced, market-based analytics to proactively manage and mitigate commodity and raw material price risk.
Volatile commodity prices cause fluctuations in the cost of raw materials, packaging, and energy that affect the profit margins of food and beverage, process and industrial manufacturing, and consumer products companies. Often organizations in these industries are ill-equipped to address cost volatility because they don’t have the software solutions to manage the commodity market risk inherent in the hundreds of items they buy from a multitude of suppliers - all of which may have different cost component models. Companies must be able to view, aggregate, and evaluate all cost models and conduct real-time, forward-looking scenario analysis as plans change and markets move.
“Procurement has entered an era marked by long term, systemic volatility of commodities. The days of purchasing raw materials, packaging, and energy with an eye only towards staying within budget are over,” said Michael Schwartz, senior vice president, chief marketing officer, Triple Point. “The new benchmark for procurement organizations is how well they manage spend relative to market prices and competitors.”
Commodity XL Strategic Planning and Procurement enables organizations to fully mitigate and manage commodity exposure. With SPP, companies can:
- Manage, measure, and report physical and derivative coverage for an integrated plan
- Simulate the impact of market changes to coverage, exposure, and spend
- Integrate supply and demand forecasts with trading plans
- Analyze multiple scenarios including sourcing alternatives and associated transport outlays
- Analyze root causes of variances to planned costs, revenues, and profit margins
Triple Point also offers Commodity SL Strategic Planning and Procurement™, which is pre-integrated with SAP. Market-leading companies using Triple Point solutions for commodity and raw material procurement include General Mills, Unilever, Petra Foods, Mercon Coffee Corp., and Armajaro Trading.