Do Your Homework Before Choosing An ETRM or CTRM Software Solution

Blog Author

Written by Brigette Gebhard – Brigette Gebhard has been with Aspect Enterprise Solutions for 10 years and is the VP of Marketing.

Trading companies of all sizes benefit from an energy and commodities trade and risk management solution. The problem has been, that these solutions have not always been affordable to smaller and mid-size companies. But with the overwhelming use of cloud solutions across industries now in play, which do not require up front capital or investments in teams of resources to manage the infrastructure — access to a professional trade and risk solution is possible for just about any size company. Systems like these are important for managing risk, supply chain activities, gaining credit from banks, and for regulatory compliance. When selecting a commodity or energy trade and risk management solution, there are many questions you should consider, and here are just a few.

  • Is it the right system for my trading business?

  • Does it have all the front, middle and back-office features needed to meet our challenges?

  • Is the vendor reliable and proven with a staff of experts?

  • Is there adequate support and training to ensure my front and back office teams can fully leverage the system?

  • Is the reporting engine powerful enough to provide visibility for my team and management?

  • Does it provide compliance for today’s regulations?

  • Will my data be secure?

Know Your Risks

As a prerequisite for successful active trading, most prosperous traders believe in strategically employing risk management solutions. Having a holistic view of the companywide risk and ability to drill it down to the lowest possible level is a basic necessity for any trading company.

Here are 3 things to be aware of, homework musts before deciding on the solution that’s right for your business:

  1. Understand Your Budget & System Costs
    Budget constraints are viewed as the number one IT challenge facing energy companies according to “The 2016 Energy Risk Software Rankings Report”. The good news here is, the smallest and largest trading companies are able to purchase cloud ETRM/CTRM. There are no surprises when buying cloud, because the project doesn’t last for months and years. Deployment is quick, and licenses are sold per user by subscription.
  2. Beware of Phony “Cloud” Providers
    To catch up with today’s standards and business requirements, some software companies are simply putting a front-end on their same-old-software package, throwing it online — and calling it Software-as-a-Service (SaaS) or cloud. So, you won’t be getting what you think you are, and you’re not being set up with the most modern delivery method available. Be sure to look under the covers 🙂
  3. Get Quick Delivery
    Aspect’s innovative scripting tools, open APIs, underlying AESthetics architecture, and its no-hardware, no-software environment, bring lightning fast deployments to the fast-paced world of trading. Gone are the days of waiting 12-18 months or longer for a working solution. AspectCTRM is being deployed in just a few weeks.

See the PDF file here for more tips before choosing a solution. 95% of Aspect Enterprise Solutions’s new clients this year compared several systems available on the market before making a choice. Due diligence brings confidence and success for your team’s decision-making process.

Make sure your solution is for the long term. So, if you’re expecting to expand into multiple commodities, or currently have multiple trading desks to support — ensure the solution you choose either supports your strategy which could be using multiple integrated solutions, or just one. For example, many Aspect clients trade multiple commodities and AspectCTRM supports oil, petroleum products, metals, biofuels, coal, petrochemicals and agricultural products. AspectCTRM is also noted for its ease of integration, so for companies with inhouse solutions already set for a specific commodity, AspectCTRM can seamlessly integrate.

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