Optimize inventory management along the supply chain

Inventory values require complex calculations that involve grade factor discounts/premiums, carry, accruals, split pricing and contract allocation. Openlink Agtech is unique in the marketplace, addressing the requirements of grain, commodity ingredients and non-commodities – integrating completely into a single software module. Multiple inventory costing methods are also supported.

Openlink Agtech captures deals and tracks movements that impact inventory at each staging point. Movements can be grouped so that each one can be reconciled to third-party statements and/or physical inventory readings. You can also calculate inventory value using these same movements.

With Openlink Agtech, you get real-time visibility into positions and inventory levels across all commodities, in storage or transit, at all locations.

This means you can minimize the risk of supplies not being available at the right place at the right time (e.g., load a vehicle or meet customer demand) – and avoid issues around supply delays, substitutions and penalties.

Measure hedge effectiveness and minimize earnings volatility

The Openlink Agtech solution analyzes the effectiveness of hedges (under IFRS9, IAS39 or FAS 133) and invokes the appropriate hedge accounting treatment.  Our module for hedge effectiveness testing provides complete transparency that enables users to drill into postings to verify all payment, accrual or valuation calculations on the trade.

The solution supports the statutory reporting required for hedge accounting.

So you can automate the application of hedge accounting rules and methodologies to ensure hedges are being correctly treated; giving you the reassurance that earnings statements are being correctly reported and subject to minimal volatility.

Devise more effective strategies to mitigate the impact of supplier default

The Openlink Agtech solution allows you to model the effect of supplier failure to properly analyze and understand potential future exposure (PFE).
You can devise strategies to mitigate the impact of supplier default using methods such as collateral management and supplier concentration management.

Streamline freight logistics and tightening payment controls

With Openlink Agtech you can schedule movements, tag freight rates to known movements and the system will then automatically create an accrual in the system based on the freight carrier, cost and weight.
This means when a carrier’s invoice arrives, there will already be an accrual in the system for that delivery ready to match the invoice against. There’s no need to track down the bill of lading and manually enter a payable.
Using Openlink Agtech you get a better understanding of liquidity, credit and market risks under a wider range of circumstances.

Get a complete view across the business for optimal commodities hedging

Openlink Agtech supports business processes right along the workflow from input commodities planning and procurement to hedging.
This means purchasing and finance teams get a complete view over company-wide inventory and forward commitments when they purchase and hedge outstanding commodities.

This enables the company to create effective hedging strategies that mitigate the effect of commodities price volatility on margin without adding unnecessarily to hedging costs.

One solution from front-to-back office

With Openlink Agtech you get one integrated solution for trade capture, valuation, compliance and limits monitoring, right through to position and risk reporting, collateral management, accounting, and cash management.  Because a single solution is used across front and back offices, a correction on a deal will automatically generate a correcting accounting entry; eliminating much of the manual reconciliation work typically required in trading operations.
The data transparency delivered right along the trade lifecycle also allows users to click on an accounting entry, for example, and drill down into the underlying trade to quickly investigate issues when they do arise.
As a result, trade processes are streamlined and the business gets more timely and accurate information for decision making.

Understand margin contribution from each process in the value chain

With the Openlink Agtech solution you can follow the path of materials right through the value chain from origination through to finished good.

You can include factors such as price volatility, manufacturing costs, transportation, storage costs, and reformulation to get a true understanding of the contribution to P&L from each process in that chain.

As a result of this transparency through the value chain, you have the necessary information to take action to improve margins at multiple points in the process. Examples include hedging price volatility, trade-offs between in-house and 3rd party origination, and using different transport options.