Vendors change occasionally. They are typically headquartered someplace in Asia and work in the Ags and Softs sector, though this is not always the case. Recently, the Director of Scalable, an Australian vendor of ERP software built on the MS Dynamics AX platform, got his start. Although Scalable is a new provider for many, the company has been around for more than 30 years. It has created a Commodity Trading module based on the MS Dynamics AX platform over the past few years and has had a lot of success with the programme. It is ready to make a mark as a commodity trading erp.
The Commodity Trading module was initially created by Scalable for a manufacturer of animal feed. Since then, Scalable has sold and implemented its solution in less than 15 businesses with locations in Europe, Canada, and Asia-Pacific for a variety of commodities including grains, scrap metal, and biofuels – Many of the CT installations are with manufacturing businesses that are aware of the benefits of fusing commodity trading with Dynamics Ax manufacturing. According to Mr. John Crew, Director of Scalable, their pipeline is very strong and offers opportunities across a wide range of manufacturing-type businesses with needs for risk management and commodity trading in industries like food manufacturing, milling, animal feed, wool, and cotton, among others.
The key to Scalable’s success is its capacity to cooperate with manufacturers who either trade commodities for a living, trade commodities as part of their business, or do both. These manufacturing enterprises are drawn to the ERP system’s integration with commodity trading.
Outside of Australia, Scalable primarily collaborates with System’s Integrators, though it also has personnel there. The Scalable solution is now offered as a traditional install on-site or hosted in the cloud, but the company anticipates releasing a SaaS version before the end of the year. However, it does handle things like commodities trading, commodity procurement, contract management, and credit risk.
Physical commodity trading companies that buy and sell commodities under specified contract conditions and are in charge of the shipment and delivery of the commodities are a good fit for Scalable’s Commodity Trading with Risk Management for Microsoft Dynamics AX. Access to the most recent Contract, Logistics, and Risk Management data within Dynamics AX is made possible by their solution. The information flow from trading and logistics to the financial department is improved by allocating and accruing all additional cost data related to contracts and shipments.
One of the most important things to comprehend is that, despite being completely connected with Dynamics AX and utilising all of that software’s features, the CT solution was built to run independently. This gives the freedom to develop the processes and procedures expressly for a company that deals with commodities without being constrained by AX’s pre-existing structures and logic for sales and buy orders. With one database, one set of business logic, and one version of the truth, they have the best of both worlds: the flexibility needed for commodity firms and the financial and inventory controls of Dynamics AX.
The existence and success of Scalable, which comes from the ERP software industry, is intriguing to ComTech Advisory. The fact that the ERP-centric Commodity Trading clients are equally as likely to be trading less liquid and unlisted commodities is also interesting to notice.