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MMForum: The power of SAP. Expand the limits of commodities trading and some tips about what your customer wants?

         Export and Import operations of Raw materials and commodities is intensive all around the world, and the big players in the industry use SAP to produce at least one of the most important documents to move materials, the “Commercial Invoice”. Many aspects related to the logistic, collections, purchase and international trade depends on the quality of trade documents. Documents, allow you to prove who the owner of the cargo is? And what’s exactly it was imported/exported? Cargo is moving through different countries faster, documents and the information containing in as well.


On the mining and commodity industry is general use and costume produce a set of documents integrated by:


  • Commercial Invoice,
  • Bill of Lading or Transport document,
  • Packing List and
  • Mill Test Certificate.


        Documents and information have to arrive to a destination port in a fast and a save way, even if sometimes, when the cargo is in transit laws in the countries related to the transaction could change and documents must be produced or re-issued according to the new scenario, there is the moment when SAP could make the difference creating in a real time a new set of documents according to the new legislation in the country of origin, or the destination. We could make easy and smooth global operations.


     Calculate the HS code could be an issued for all these international operations, due the fact that commodities have different descriptions; this code determines for customs purposes what the cargo is? What the custom tariff to be paid is? If any, and any other special document required as a non-radiation certificate for Steel slabs.  There are some sublime changes across each country and SAP can offer this solution to the customers. We could produce stowage plans, indicating where the cargo was shipped and in which position creating the shipping or the container as a warehouse. (Not for minerals, only for bulk cargo).


          Also, SAP could be connected to banks for collection purposes (sending digital documents), remember save time is save money, and a set of documents well issued is guarantee for all the parties on the transaction, seller, buyer, traders and agents; they all could trust in how the document was produced?, that data is registered on SAP database and that documents were not handmade. Integration with FI could let us know and let know our customer when the documents were sent? to which partner? and confirms when will be delivered. Also make a projection about when could we be able to collect the bill once the documents were delivery to the customer or to the financial institution. Banks deals with documents in order to honor the international operations, and each set of documents in this industry represent sometimes millions of dollars to be collected (due to the high volumes to be manage), I’m pretty sure that exporters would like to reduce the risks to delay their collections. We should take advantage all the information available in SAP just keeping in mind, that fast transactions make our customers happy, reduce the risk of bad debts, and accelerate your collections.


          To me SAP means a philosophy founded on Integration. SAP makes people to work together and create the best solution according to each company business strategy and philosophy. Find a new links between the customer needs and the information available in SAP open an opportunity to improve process and save any kind of resources. Finally, I hope that you enjoy my vision about how SAP can help on this edge of the mining and mill industry.


Sincerely, Argenis

Student HEC Montréal.

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      Author's profile photo Kevin Harmon-Smith
      Kevin Harmon-Smith

      Hello Argenis, Absolutely right, SAP is indeed founded on integration and whilst I have not implemented the latest Mining Industry solution I do know that there are two recent innovations that might just cover some of the functionality you are requesting. The Trader's and Scheduler's Workbench (TSW) component provides functions for planning, scheduling and executing bulk shipments. At load & discharge, an official notice is sent by a partner, containing information about the product movement (so called ‘Ticket’). The ticket actualization automatically performs the logistics & financial postings. Commodity Pricing. The Marketing, Accounting and Pricing component of SAP for Mining covers market quotation based pricing as well as quality based penalty or bonus payment calculations as typically required in the mining industry. Check them out either on scn or SAP Help.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Kevin, thanks for your feedback, that make mes happy that I could be able to understand one of the requirements for the industry. So will be my pleasure be involve on any development regarding the integration between the export document issuing and the collection. I'm sure that there's is a place in the market for a product that could be offer for any industry field related to Export/Import operations.

      Author's profile photo Jose Antonio Martinez
      Jose Antonio Martinez

      Dear Argenis:

      Thanks for share this info with us, and the best wishes in the challange.

      Regards Antonio Martinez

      Author's profile photo Former Member
      Former Member

      Interesting point of view Argenis, thanks for share this with the community , is good to know others people opinions. Looking forward to next interesting post from you.

      Author's profile photo Former Member
      Former Member

      Well appreciate dear Argenis

      Good luck

      Author's profile photo Former Member
      Former Member

      Argenis congrats for this excellent article, it's really interesting because when you have a large quantity of goods with different Harmonized System, customs needs to take its time to verify  and check if your documents were properly filled to be able to get clearance from Canada Border Service Agency ( in the  case of Canada). SAP definitely is the best option and tool to help us in this kind of stuff.



      Author's profile photo Former Member
      Former Member

      Argenis your article is excellent....Congratulations