Decision-support systems for risk management, trade, execution and cost control of agricultural commodities
In certain sectors, the compound feed industry for example, the purchasing and supply of raw materials makes up almost 80% of the total cost of the final product. Therefore, it goes without saying that an efficient purchasing department for the primary processors of agricultural raw materials is extremely important.
The Operra software package efficiently computerises the administrative processing of such processes as, contract follow-up, logistical supply planning, raw materials issuing and verification of supplier invoices.
Furthermore, Operra aims to provide management with accurate information at any time regarding how well the purchasing department is functioning, as well as the competitive position of the company. This is done by continuously monitoring quantitative, qualitative and financial assessments of the current commodities market, as well the futures markets. This means the quality and traceability of raw materials can be carefully monitored.
Specialized solutions for better management of market volatility
The high demands by the biofuel industry and the increasing impact of the activities of investors and speculators on the financial markets, boosted not only the level but also and especially the volatility of raw material prices during the last years. Specialists believe that this might be a long-term situation.
The agro-industrial groups are trying to adapt to the new market conditions practising more and more futures hedging techniques and contracting sales of finished goods and raw materials costs.
Operra facilitates the control of the (expected) cost prices and the inventory by activity. The impact of the (future) markets on the positions and formulas is immediately recalculated with a separate view on the physical and financial coverage of each product and activity.
For batch-oriented industries, Radar Automation has incorporated these new developments in its software products Operra and Libra . The combination of these applications helps for example feed manufacturers to optimize their purchasing decisions and the find the optimal solution for their bill of materials (recipes).