5 CTRM Myths Recap: What We’ve Learned

Today, we are wrapping up our “5 Myths of CTRM” series, where we have debunked the most common commodity trading and risk management software (also known as CTRM software or ETRM software) myths. Whether you have been following this series or are just now taking notice, here’s a quick recap on the CTRM myths we have debunked, as well as the tools that can help you take a deeper dive into each point:

1. What I’m doing today is good enough

This myth is common among businesses that rely on spreadsheets and homegrown solutions to manage their portfolios. Astonishingly enough, this line of thinking is a big factor in why 90 percent of commodity trading companies still use spreadsheets in some portion of their trading activities (source: ComTech Advisory).

With technology evolving at a breakneck pace in an ever-changing global market, what may seem to work today with these manual methods will ultimately hinder a business’ growth strategy. As a result, organizations that fail to turn to more automated portfolio management processes and advanced analytics capabilities will suffer risk exposure, noncompliance, resource consumption, wasted data, and lack of visibility.

Download our e-book, “5 Reasons Spreadsheets Put Your Company at Risk” to learn more about why you should dump the spreadsheets in lieu of an enterprise commodity management solution that offers advanced analytics, automation, and real-time portfolio management capabilities.

CTRM Myths

2. An off-the-shelf commodity management system won’t give me the flexibility I need

Research shows that 70 percent of commodity businesses have at least considered building their own CTRM or ETRM software. And we don’t blame you if you are a part of that stat. After all, you know your business better than anyone else does. But consider this: What if we told you a CTRM solution exists that can be both off-the-shelf and configured to your business’ specific needs?

Over the decades, Allegro has built a robust and flexible commodity management platform with advanced analytics. With Allegro’s products and services, you will receive unmatched industry expertise, configurability, and built-in best practices. Boiling it all down, we can help you assess the best way to implement our software for your business’ needs.

Learn more about why you should choose Allegro’s enterprise commodity management software instead of building an in-house solution by downloading our e-book, “6 Reasons Building a CTRM Costs More than You Think.”

CTRM Myths

3.CTRM software implementations take too long

While the time it takes to implement CTRM or ETRM software depends on the size and complexity of a project, working with Allegro means your implementation expectations can be met and exceeded.

Need to be up and running in a matter of weeks? We have you covered. Our implementation consultants are experienced in meeting aggressive implementation timelines and have had great success through phased rollouts. Want a cloud-based implementation? Allegro Horizon, our cloud-ready software, allows us to produce an instance of each customer’s production in the cloud during implementation. This results in reduced implementation time and costs because Allegro’s team (and yours) can work within the system from anywhere, anytime – eliminating the need for larger teams to be on site throughout implementation.

Don’t just take our word for how successful Allegro with efficient implementations. Read how Hanwha Total Petrochemical experienced a successful 10-week implementation of Allegro Horizon here.

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4.CTRM solutions are too expensive

Yes, enterprise CTRM software is a strategic business investment. So, why do companies choose to buy enterprise CTRM software? For starters, a scalable and comprehensive software package – one that has been specifically developed for the purpose of commodity trading and risk management – can lead to tremendous rewards, lower your total cost of ownership, and accelerate your return on investment.

You may already be well aware of the fact that the ROI is undeniable. That said, we know it can sometimes be challenging to convince the rest of your team to invest in enterprise CTRM or ETRM software. That’s why we’re here to help.

Download our infographic, “20 Facts to Make the Case for Next-generation CTRM,” which will arm you with the facts you need to approach your team with a CTRM investment strategy.

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5. I can put analytics off for now

We know analytics is a big buzzword these days. We also know that it is so much more than just a buzzword. Why? Because data truly is king when it comes to managing a commodities portfolio. And every day you do not properly utilize your data, you are falling behind.

A study from MIT’s Sloan School of Management found that data-driven organizations have a 5-6 percent higher output and productivity than less data-driven businesses. What’s more, Nucleus Research found that analytics pay back $13.01 for every dollar spent.

Gathering data from your business processes and properly analyzing it can reveal major insights to help you drive future growth. Let Allegro Analytics help you do just that. With our advanced analytics capabilities, you can drive business growth through portfolio valuation, decision support, physical asset optimization, and more.

Download our analytics e-book to learn more about how advanced analytics, coupled with enterprise commodity trading and risk management software, is the key to your business’ success.

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Now that we’ve taken you through a deep dive of the “5 Myths of CTRM,” you may be asking yourself “What’s next?” Well, we’d like to learn more about you and your business needs!  Contact us today to speak with an Allegro expert about how we can help you positively impact your bottom line by taking your commodity trading and risk management processes to the next level.

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