Commodities - Baringa · commodities traders, suppliers, fabricators, consumers and producers. Our commodities experts understand both the end-to-end commodity value chain – from

Commodities

2 Commodities

ERROUS METALS SOFTS & GRAINS LIVESTOCK & DAIRY LUMBER & RUBBER PETRO-CHEMICALS & BIOFUELS COAL, GAS & POWER BASE & FERROUS METALS SOFTS & GRAINS LIVESTOCK & DAI & RUBBER PETRO-CHEMICALS & BIOFUELS COAL, GAS & POWER BASE & FERROUS METALS SOFTS & GRAINS LIVESTOCK & DAIRY LUMBER & RUBBER PETRO-CHEMICALS & BIOFUELS COAL, GA

Organisations that produce,trade, transport and processraw materials are inextricablyconnected with the sleeplessglobal commodities market.Controlling and monitoringoperating margins in fast-paced markets requiresefficient processes, effectivepeople structures andtechnology in order to executetransactions with maximumautomation and reducedhuman intervention. In such acompetitive environment, it hasbecome critical to invest inperformance-strengtheningprojects to stay ahead of othermarket participants.

Growth is also being achievedthrough launching new servicesand offerings, such as risk

management and route tomarket services. Multiplebusiness units covering multiplegeographies have only limitedvisibility of their clientrelationships, and many of ourclients are investing to maketheir trading operations morecustomer centric. Regulatorychanges, such as the EU’s MiFIDII and Market Abuse Regulationhave increased demands fortransparency at every stage.

Baringa consultants have in-depth knowledge of thechallenges facing marketparticipants and contribute tothe success of companiesactively seeking to improve themanner in which they interactwith metals, oil, petrochemical,agricultural and manufactured

product markets. We work withcommodities traders, suppliers,fabricators, consumers andproducers. Our commoditiesexperts understand both theend-to-end commodity valuechain – from fuel logistics,shipping and storage to priceformation, physical trading – andrisk management.

We develop business and ITstrategies to create moreefficient, scalable and responsiveorganisations, and help clientsmove towards a target operatingmodel. We lead programmedelivery and systemimplementation, transformingprocesses, organisationalstructures and IT systems.

Get in touch with:

Andy [email protected]

David Sutton [email protected]

We understand commodities

RY LUMBER & RUBBER PETRO-CHEMICALS & BIOFUELS COAL, GAS & POWER BASE & FERROUS METALS SOFTS & GRAINS LIVESTOCK & DAIRY LUMBER & RUBBER PETRO-CHEMICALS & BIOFU AS & POWER BASE & FERROUS METALS SOFTS & GRAINS LIVESTOCK & DAIRY LUMBER & RUBBER PETRO-CHEMICALS & BIOFUELS COAL, GAS & POWER BASE & FERROUS METALS SOFTS & GRA

Baringa helps the world’s leading commodity trading organisationsto overcome challenges and realise ambitions in the following areas

Commercial strategy andsupply chain

Managing and adaptingoperations from strategic visionto realisation through:

p margin leakage reductionand earnings stabilisation

p cost managementp asset optimisationp investment or divestment

advisoryp asset operations

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Target operating model andoperational performance

Optimising performance ofpeople and process structuresthrough:

p operational benchmarkingp Target Operating Model

(TOM) definitionp offshoring and outsourcingp operational performance

improvementsp process automation and

roboticsp trade finance process

optimisation

Trading, risk and supply chaintechnology

Identifying and leveragingtechnology solutions to improvecontrol and profit through:

p Commodities Trading RiskManagement (CTRM) andEnterprise Resource Planning(ERP) selection

p implementation andintegration

p software vendor partnershipsp business change

management

Enterprise risk andregulation

Understanding the necessityfor enterprise riskmanagement and proactiveregulatory compliancethrough:

p regulation and tradingmonitoring

p risk operating models andframeworks

p enterprise risk analyticsp managing data quality

and submission

We understand commoditiesCommercial Strategy and Supply Chain

Commodities trading firms generate profitby transferring commodities across time,location and form in a more efficientmanner than is implied by the prevailingmarket price differentials. This should bedone through the effective operation ofsupply chain assets. There are a number ofthings Baringa can help firms to do toimprove the profitability of these supplychain transfers:

p assess and improve the approach takento cost management across trading andoperations, which can deliver muchimproved transparency, accuracy andaccessibility in core economic data

p implement and enhance optimisationtools which:

- identify areas of under-performance that exist within the supply chain

- improve the efficiency of asset management systems

p design operational solutions to controland monitor optimum interactionsalong the supply chain.

Delivered effectively, the sum of thesecomponents will bring significantly reducedmargin leakage as well as improvedopportunity for revenue generation.

Baringa also helps to guide our partnersthrough the journey of asset acquisitionor divestment, and offers advice on howto most effectively define a firm’soperating model and leverage existingand future business structure.

4 Commodities


Target Operating Model and Operational Performance

Operational performance is typicallycumbersome to control and challenging tomeasure within complex multi-profitplatform structures. To address this, Baringacan help organisations to:

p ensure that they start any operationalimprovement exercise from a carefully-defined and well-understood targetoperating model

p design operational performance reportsto ensure that management areprovided with consistent and preciseinformation, reflecting the performanceof the business

p perform benchmarking analyses ofoperational performance againstcompetitors to identify areas of relativeinefficiencies

We are advisors to many firms consideringoffshoring and outsourcing solutions fortheir downstream trading operations, aswell as providing project management andinsightful advice through a preciseoperational performance improvementprogramme.


Commodities 5

We understand commoditiesTechnology

Maintaining and refreshing the technologyplatform for commodities companies hasbecome a critical part of controlling andoptimising profitable trade and supply chainactivities. We use our deep experience ofcommodities, harnessing the value andcomplexity of data, to assist organisationsby:

p tailoring technology IT architecture fromorigination through to trading,manufacturing and wholesale

p sourcing an optimal solution for theirbusiness, using our network ofrelationships with industry software anddata providers

p defining, implementing, integrating,testing and tuning of trading, risk andsupply chain platforms

p considering business engagement andchange management whenembedding new technology initiatives.

Baringa’s team of commodity industryexperts are experienced in ERP, CTRM andmarket data integration. We have strongrelationships and experience with theleading software and service providerswhich can help to accelerate the selectionand delivery of successful ITtransformation programmes.

6 Commodities


Enterprise Risk and Regulation

Commodities companies have, untilrecently, been relatively shielded from therange of regulations faced by financialtrading institutions. However, changes suchas MiFIDII see these exemptions reduced,greatly increasing the regulatory overheadthat Commodities firms must comply with.Baringa helps firms to identify and navigatethe implications of a changing operatinglandscape through:

p readiness assessments in anticipation ofregulatory change and improvement ofthe compliance function

p developing enterprise risk management,organisational structures, processes andsystems

p enhancing risk analysis and controlcapabilities.

The need for commodities companies tohave dynamic, proactive risk managementframeworks in place, and to have a solidunderstanding of the potential risks facingtheir businesses has never been soimportant. Our risk and regulatory expertscan advise on enterprise risk policy,modelling and analytics, for diverseportfolios containing traded and physicalasset positions.


Commodities 7

Baringa Partners LLP, Dominican Court, 17 Hatfields, London SE1 8DJT +44 (0)203 327 4220 F +44 (0)203 327 4221 E [email protected]

baringa.com

© Copyright Baringa Partners LLP 2018. All rights reserved.

About BaringaBaringa Partners is an independent business and technologyconsultancy.

We help businesses run more effectively, navigate industryshifts and reach new markets.

We use our industry insights, ideas and pragmatism to helpeach client improve their business.

Collaboration is central to our strategy and culture ensuringwe attract the brightest and the best. And it’s why clients loveworking with us.

Baringa. Brighter together.

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Commodities - Baringa · commodities traders, suppliers, fabricators, consumers and producers. Our commodities experts understand both the end-to-end commodity value chain – from