SAP® Commodity Management Solution Addresses Price and Supply Volatility by Offering Improved Transparency into Commodity Risk
SAP NEWSBYTE — SAP AG (NYSE: SAP) today announced the latest version of the SAP® Commodity Management solution, an integrated offering designed to help enterprises protect and increase profit margins as they buy or sell commodities and manage overall commodity risk. The announcement was made at the global launch event for SAP Commodity Management, held October 8 in Zurich, Switzerland.
The recent volatility in commodity prices has outpaced worldwide financial volatility. With increasing global demand and continuing unpredictability, industries such as consumer products, agriculture, mining and metals, oil and gas, chemicals, automotive and high tech need better ways to defend against potential financial damage that commodity price uncertainty causes. SAP Commodity Management is available with enhancement package 7 for the SAP® ERP application and is powered by the SAP HANA® platform. It offers a single platform that can help companies analyze, understand and mitigate commodity risks, contributing to more predictable business results that can provide:
- Powerful analytics and real-time commodity position reporting across multiple business units
- Support for complex commodity pricing rules for physical purchases and sales
- More efficient execution of hedging strategies
- Functionality designed to help handle integrated accounting and settlement processes of physical and financial commodity transactions
- Linking detailed physical transactions with financial hedges to help comply with global hedge accounting standards
“Litasco has chosen SAP to establish a stable, reliable and secure information environment to manage the company’s commodity operations as an integral part of our existing SAP system landscape,” said Nikita Kochetkov, director of Accounting, Taxes and Treasury, LITASCO SA. “We appreciate SAP’s continued investment into this market and rely on further valuable interaction with SAP for the commodity management solution.”
SAP Commodity Management Delivers Results Across Industries
Whether a company produces commodities for sale into the global market, purchases commodities to convert them into semi-finished products or buys commodities to manufacture consumer goods, commodity management software from SAP will be able to help organizations across many industries improve transparency in their risk positions.
- Mining companies can use SAP Commodity Management to better manage the sales process of raw materials against complex, index-based pricing rules and to help assess and hedge their risk positions from the physical sales business.
- Metal companies will be able to use the solution to help buy in metal commodities and to sell metal products with complex pricing rules, often index- and quality-based, as well as to better assess and hedge the price risk that arises from the net open physical long and short positions.
- Consumer industries can deploy the solution to help handle complex buying processes for physical or contained commodities in the input materials for their manufacturing process, thus helping to assess and hedge the price risk from their forecasting and purchasing positions.
“Companies are dealing with increasingly volatile market prices and stringent regulations,” said Anja Strothkämper, vice president, Line-of-Business Solutions for Commodity Management, SAP. “Sitting back and thinking these situations are beyond control will put companies’ profitability and competitiveness at risk. SAP Commodity Management gives companies a more comprehensive view of risk across lines of businesses so they can react quickly to market changes and situations. With SAP, companies are empowered to protect and increase their profit margins as they buy or sell commodities while managing overall risk.”
For more information, visit the SAP Newsroom.
As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 197,000 customers (includes customers from the acquisition of SuccessFactors) to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
©2013 SAP AG. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
Note to Editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.
Follow SAP on Twitter at @sapnews.
For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)