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.
Student HEC Montréal.