Brady PLC has promoted the idea of services for several years now with the idea being that discrete functionality could be delivered independently of its CTRM/ETRM solutions. The resulting offerings are part of its suite of CTRM services. This week, Brady announced its new Tolling module as a service in line with this approach and I spoke with Harry Knott, Brady’s Product Marketing Manager to find out more.
“The Tolling module is a component that is fully integrated with the Brady Physical CTRM, but it is also usable with third-party CTRM platforms too,” he explained. “So, we can offer the Tolling module to any firm out there with a need to solve the business requirements around tolling contracts.” According to Knott, many firms are forced to use off-system approaches to solve their tolling business requirements using manual processes and spreadsheets for tracking their tolling agreements without proper audit capabilities of access controls. This is a risk and compliance problem, he told us, but there are many other potential issues associated with this approach including, for example, inventory impacts, fee calculation errors, P&L issues and so on. The Brady module helps solve all of these issues by providing the ability to capture and track tolling agreements, providing the ability to schedule and deliver out of inventory and receipts into inventory, forecasting fees, and payables and forecasting inventory availability, for example.
For ComTech, this approach of delivering discrete functionality as a service is another example of the move towards CTRM ecosystems and the disaggregation of the CTRM solution (the subject incidentally of the last CTRMRadio). We begin to see many examples of similar approaches in terms of delivering specific horizontal or vertical functionality in discrete bundles including, but not limited to, TRADESPARENT’s risk and regulatory overlays, Eka’s move to apps and API’s, Gen10’s focus on delivering collaborative apps and so on. Brady’s suite of CTRM services approach is an innovative example of this trend in our opinion.
According to Knott, “The combination of Brady’s Tolling module and your own CTRM system allows you to fully track movement and profitability between purchases and sales even when the material has gone through several transformation stages.”
The tolling module may be of particular interest to companies trading physical metals, alloys or concentrates who utilize tolling contracts to convert raw material to refined or semi-refined materials. But it can also be of use in other commodity groups such as ags & softs and energy where tolling contracts are also used.