Industry ChallengesChallenges aplenty
As the demand for the production of Palm oil increases substantially, Managers are faced with the need to have explicit control of stock and inventory at all times in order to achieve optimal cost and revenue ratio. The challenge to ensure that cost of production is minimized also involves a good overall control of quality, wastages, errors and pilferages. OpenTAS can help mitigate and reduce much of these inefficiencies as it requires only a one-time data entry.
As the market place becomes increasingly competitive under a highly volatile market place with large price fluctuations driven by the emergence of the more sophisticated palm oil traders, Managers are additionally faced with the challenges of not only being best in class from the perspective of production and distribution but market savvy enough to understand the ramifications of price volatility on the overall profitability of the company. This reality requires the use of commodity futures and derivatives instruments to manage and protect profits. Timely and reliable information on stock and inventory positions is key in making informed decisions in order to mitigate the inherent risks and exposure to the volatility of the markets. OpenTAS provides an integrated system that not only reports the current status of stock and inventory balances but can facilitate inventory forecasts using historical and empirical data stored in the system.
Source: www.palmoilhq.com
Typical challenges faced by Managers include:
As the demand for the production of Palm oil increases substantially, Managers are faced with the need to have explicit control of stock and inventory at all times in order to achieve optimal cost and revenue ratio. The challenge to ensure that cost of production is minimized also involves a good overall control of quality, wastages, errors and pilferages. OpenTAS can help mitigate and reduce much of these inefficiencies as it requires only a one-time data entry.
As the market place becomes increasingly competitive under a highly volatile market place with large price fluctuations driven by the emergence of the more sophisticated palm oil traders, Managers are additionally faced with the challenges of not only being best in class from the perspective of production and distribution but market savvy enough to understand the ramifications of price volatility on the overall profitability of the company. This reality requires the use of commodity futures and derivatives instruments to manage and protect profits. Timely and reliable information on stock and inventory positions is key in making informed decisions in order to mitigate the inherent risks and exposure to the volatility of the markets. OpenTAS provides an integrated system that not only reports the current status of stock and inventory balances but can facilitate inventory forecasts using historical and empirical data stored in the system.
Source: www.palmoilhq.com
Typical challenges faced by Managers include:
- Lack of critical information to enable informed decision making due to over-reliance on manual and hard-copy input of data.
- Inaccurate and unreliable information due to human error and inconsistencies. Inability to comply with accounting and regulatory reporting standards e.g. Sarbanes Oxley (SOX), Generally Accepted Accounting Practices (GAAP) etc.
- Incur high refinery/terminal operating overheads due to over-reliance on manpower to operate the facility.
- No effective system to deter, delay, detect and to respond to loss and pilferages.
- Inability to maintain accurate historical information on a common platform for analysis for future production, sales & marketing forecast and risk mitigation.
- Inability to efficiently track product movements in and out of refinery/terminal.
- Inefficient and cumbersome maintenance of too many interfaces within the company’s IT architecture.
- Inability to swiftly generate accurate Reports for Management analysis and submissions on weekly and monthly basis.
