- December 15, 2022
- Posted by: Tom Hedge
ERP Software: A Catalyst for Successful Energy Trading Management
Does your business still rely on spreadsheets or legacy systems to manage back-office operations? It’s time to move away from these cumbersome “solutions” and do what works – use powerful, up-to-date Enterprise Resource Planning (ERP) software.
Legacy ERP systems involve siloed units, each requiring complex customisation to meet a business’ unique needs. This slows down operations immensely.
With challenges regarding supply chains, regulations, and the increasing use of renewables, you need the highest performing software if you want to compete. Modern ETRM software with in-built ERP functionality is the answer – read on to find out why.
What is ERP Software?
The main purpose of ERP software is to make operations more efficient by integrating different activities. This software helps businesses manage and automate processes including accounting, procurement, compliance, and HR processes, and provides valuable insights that can inform future strategy.
Modern ERP systems for energy and commodity trading offer flexibility, security, sustainability, and scalability while ensuring the continuity of business processes.
Why Are ERP Systems Important for Energy Trading?
- Provide a real-time overview of financial data
- Provide a single version of the truth
- Reduce operational costs by automating and streamlining processes
- Ensure all regulations are met
- Improve cross-functional or cross-departmental working
- Bring together data from multiple sources into one centralised system, making it easier to manage trading operations.
- Provide important insights into energy trading trends and patterns, helping businesses to better understand the market and make informed decisions about their trading activities.
When is it Time to Adopt an ERP System?
Below are some indications that you need an ERP system as soon as possible:
- You are using spreadsheets or other documents to store important information.
- You are using separate systems for different processes, and these systems do not integrate well together. (For example, your accounting software is not compatible with your systems for front and mid-office operations). This ends up wasting a lot of time and frustrating staff.
- You are using more than one system for different processes within a single department.
- You are able to complete tasks with the current system but the tools are limited. This shows it is time to implement an ERP system that offers flexibility and scalability to support your growth.
- You do not have easy access to data, or data is siloed across departments or systems.
- You do not have clear insights into inventory.
- Customer experience is reduced due to the general disorganisation described above.
A cloud-based ERP solution solves these problems. You team will have access to the tools and data they need – anytime, anywhere.
How Inatech’s ERP System Simplifies Back-Office Operations
Inatech is a global provider of Energy Trading and Risk Management solutions. We are a trusted partner of small businesses and large enterprises when it comes to specialised ERP integration and implementation.
Our solution removes the manual work in your financials and accounting. It offers the following functionalities:
- Bank management facility (reconciliation)
- Credit management
- Trade finance
- Emissions credit: You can achieve your decarbonisation goals with an extensive solution for credit instruments trading worldwide, including:
~ USA: RIN, LCFS, Cap &Trade
~ EU: ETS-FAME & UCOME
~ UK: RTFC
- Accounts payable and accounts receivable
- General ledger
- VAT: We offer localisation of taxation according to your region.
Integrating with ETRM and CTRM Software
Generic ERP systems were not built with commodity and energy trading risk management in mind. That’s why your business needs a system that is tailored to the unique requirements of this industry.
ERP software needs to integrate with risk management tools, seamlessly connecting front, mid, and back office functions that are specifically related to energy trading.
Generic systems do not account for volatility in prices and are therefore not fit for managing and mitigating trade risks. Software that’s purpose-built to carry out this function is essential for any trading company. Such solutions are also designed to manage hedge portfolios, contractual fluctuations, and support standard reporting frameworks.
Our ETRM solutions can answer questions such as what your daily physical exposure and PnL is, what your overall inventory position is, and how you reconcile your bill of lading (BOL) report. Generic ERP software does not have such capabilities – however, a specialised ETRM system with in-built ERP and analytics functionality is designed to comprehensively meet all such requirements.
The precision doesn’t stop there – CTRM and ETRM platforms must be further customised depending on what fuel is being traded and the unique challenges involved.
ERP systems are an indispensable tool for any business engaged in energy trading, offering a range of features that help streamline operations, boost efficiency, improve safety, ensure compliance and provide valuable insights, Naturally, the result of these benefits is greater profitability.
Inatech offers cloud based ETRM/CTRM software (with in-built ERP solutions) for energy and commodity traders. To find out more about how our solutions can provide your organisation with leaner operational management, contact us today.