Why It's Time to Ditch Excel for Commodity Trading and Risk Management
CTRM Software is the Way Forward for Efficient and Accurate Commodity Management
Trading commodities is quite complex, as it can be impacted by weather events or political strife that are often difficult to predict and can have an outsize impact on prices. As the market becomes increasingly complex and competitive, having the right tools and strategies regarding commodity trading and risk management (CTRM) can provide a competitive edge. While many businesses have relied on Microsoft Excel in the past, the current technological and competitive landscape calls for more advanced and efficient CTRM software.
Excel (and its limitations) for Commodity Trading and Risk Management
Excel is a powerful tool that has been widely used for many years in different fields, including finance and trading. It offers a wide range of functions and capabilities, making it an attractive option for businesses looking to manage their trading and risk management activities. However, Excel has several limitations when it comes to CTRM. For example, it is not specifically designed for trading and risk management, meaning it lacks some of the key features that businesses need to manage their commodities effectively.
One of the main limitations of Excel is its inability to handle large volumes of data. Trading and risk management involve dealing with vast amounts of data, such as market prices, historical trends, and supply chain data. Excel can handle large amounts of data, but it becomes slow and cumbersome when dealing with complex data sets, leading to delays and inaccuracies.
Furthermore, creating reports with spreadsheets can be time-consuming since someone must manually aggregate and manipulate data. This could lead to missed opportunities that could have been acted upon if the report was available sooner. Additionally, creating meaningful insights from spreadsheets requires advanced programming skills. Spreadsheets were developed primarily to manipulate data, not to create comprehensive reports interpreting it. Therefore, generating actionable insights that can help drive the business forward can be challenging.
And what about CTRM Software?
CTRM (Commodity Trading and Risk Management) software provides a comprehensive solution that enables front, middle, and back office staff to streamline their workflows and optimize commodity-specific operations. Unlike generic software solutions, CTRM platforms are purpose-built and tailored to support all aspects of commodity trading, offering a range of specialized tools and features. In essence, CTRM comprises a broad set of functions that vary depending on what commodities are traded, what assets are employed in the business, where those assets are located, and what the company’s business strategy and business processes are.
Introducing Hermes: The Comprehensive Software Platform for Efficient Trading and Risk Management
Hermes is a modern software that provides all features necessary to improve the efficiency of your commodity trading and minimize all risks involving your operation.
It is an easy-to-use web app that simplifies every aspect of the trading lifecycle. We offer a suite of features that delivers real-time trade capture, position management, risk analysis, and accounting settlement, giving you a complete and accurate view of your positions. With customizable end-to-end solutions, Hermes embraces your workflow, helping you with integrations, reducing operational risk, making informed decisions, and maximizing profitability.
Spend less time on administrative tasks and more time on what matters most.
Do you want to revolutionize your commodity trading and risk management? Schedule a demo of Hermes today and see how our purpose-built CTRM software can optimize your workflows, minimize your risks, and maximize your profits.