Commodity Risk Management

Unlock the Power of Real-Time Analytics with SAP HANA

Due to the volatile nature of commodity prices, many businesses in the manufacturing industry find it difficult to align operating and profit margins, and are often faced with uncertainty and risk at every step of the buying and selling process. By demonstrating how uncertainty in this niche sector impacts different industries, the author of this article explains different commodity risk management strategies that can be supported with SAP technology. The article discusses how SAP Commodity Management software in particular allows businesses to price procurement and sales contracts based on market quotes and complex formulas, settle with counterparty offers, perform risk assessments of physical and financial transactions.
After reading this article you will be able to:
- Understand how to perform risk analytics by creating a data model using SAP Commodity Management;
- Explain architecture considerations for risk reporting in a SAP S/4HANA database; and
- Explain architecture considerations for risk reporting in a sidecar HANA database

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MEET THE AUTHORS

Rajat Agrawal Rajat Agrawal, Platinum Consultant, SAP America
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Rajat Agrawal is a platinum consultant at SAP America. He has extensive experience in oil & gas and agriculture industry solution portfolio. Rajat has worked very closely on commodity management & risk analytics leveraging SAP HANA, which is one of SAP’s current strategic investments.Rajat has knowledge of various SAP modules and business processes spanning CPG, chemical and oil field services industry along with SAP IS Oil and Agricultural Contract Management solution. Rajat has 18 years of SAP experience which includes co-innovation with customer, greenfield, upgrade and business transformation projects in US, Europe and India largely on fortune 100 companies.