‘See TRM’: An Eye Opener

Post by Pioneer Solutions on August 8, 2018

CTRM is a term you are familiar with as a reader of our Blogs: Commodity Trading and Risk Management Systems. They are purpose-built software systems to automate complex and routine tasks and business processes around supply/sourcing management thereby eliminating manual processes and reducing costly errors. CTRM systems have been commercially available for almost two decades, yet firms still often find themselves using spreadsheets or developing systems in-house, believing those are better options for reasons of cost, strategy, and flexibility. Yet, they blind-sided themselves from a next-generation CTRM solution that offers all the non-proprietary functionality to support individual strategies with implementation options that can compete with the cost of playing ‘software-house’ internally: TRMTracker (“TRM”) by Pioneer Solutions. Hence, an invitation to you ‘See TRM’ – an Eye Opener!

Why CTRM?

The impacts of changing market rules and regulations, the transition to renewable energy, geopolitical developments, and competition from new market entrants, are just a few of the challenges that are forcing companies to review the systems that support their business. Real-time insight, creativity of product offerings, flexibility to change direction, while reducing risk and not leaving money on the table are prerequisites in today’s market place. Implementing a front-to-back ETRM system solution provides:

  • One Version of the Truth: Seamless Trading to Settlement system of record
  • Real-time Visibility and Enhanced Decision Making: Increasing transparency across the enterprise from the portfolio manager to the chief risk officer.
  • Fewer Missed Deal Opportunities: Valuation and drill down reporting capability to view exposure to market, volumetric and other risk.
  • Centralized Control and Decentralized Execution: Stay agile with trader autonomy while enabling management control.
  • Minimize Disputed Settlements: Settle correctly and maximize operational margins and improve financial accuracy down to the cent.
  • Improved Hedging: Better information enables to hedge out further and reduce capital expenditures.
  • Operational Excellence: Protect your margins: Single system reduces risks and mistakes and therefore unnecessary added costs.

As a result, operational risks will be minimized, process efficiency increases, and you keep up with the industry regulations and standards.

Why TRM?

How to better answer this than by letting a customer speak:

“At first, during the procurement phase, I thought they were overselling their configurability and ease of use of TRMTracker, but after we dived deep into it, we realized that they were actually short selling it. I think you can do whatever you need to do in TRMTracker, once you know your way around. Of course, there are some concepts that you need their developers for, but over time, your dependency on them significantly decreases; hence, the budget you need to allocate.”

When companies can configure their proprietary business processes and feed it or configure it with their ‘secret sauce’ that drives their strategy, then there is hardly a value-add for inhouse development.

When a modern CTRM system, such as TRMTracker, offers a high-degree of user configurability, the reliance on the vendor will reduce for a lower cost of ownership over time. TRMTracker allows the user to configure and change templates, formulas, book structures and data import/export rules supporting a slew of formats from flat files to XML, SOAP and REST webservice APIs. To minimize the future cost of maintaining customizations, the system allows, among others, to add user define fields. Finally, innovative reporting options offer easy report creation and ensures user adoption, should the intuitive screens haven’t done that already.

Some of the Trends for 2018 that also applied to CTRM were Automation, Analytics and Cloud services. TRMTracker, conceived as a web-based system, was developed from the back-to-the-front, thereby ensuring it is has the leading backoffice functionality in the industry. As a result, end-to-end automation can be realized with a live system that offers in the front office robust and smart deal entry including market connections, updates positions in near real-time whether on the desktop or smart phone, utilizes rule-based algorithms, while the back-office benefits from straight-through-processing and functionality to settle standard and complex non-standard contracts. Consequently, it also supported digitization so that further forms of artificial intelligence can be applies, such as robotic process automation.

With these capabilities and features, TRMTracker also caters to the non-enterprise level companies that have grown out of their spreadsheets. Via www.TRMtracker.com, a self-serve, rapid deployment online CTRM service is offered, leveraging selected Tier-1 functionality for basic deal capture, position management, and standard reporting for mark-to-market and P&L. No hardware and software needed, just a browser to access the service via the internet. A compelling CTRM Software-as-a-Service to growing businesses who need a modern, agile business solution that is reduces their complexity and cost.

When customers tell you that your software has been an eye-opening solution for their business, you feel the urge to tell others and give them an opportunity to experience the same. Investing in a modern CTRM system will help not only surviving but succeeding in today’s disruptive business world. Pioneer’s offering is state-of-the-art, and we look forward hearing from you to See TRM with us.

 

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