Lacima to provide commodity analytics capabilities for SAP Commodity Management

17/09/2018

18 September 2018.  Lacima, the industry acknowledged and award winning leading provider of energy and commodities analytics with capabilities to meet the trading, risk management, valuation, and optimization needs of global multi-commodity and energy players, today announces its cooperation with SAP.  SAP is a market leader in enterprise application software across multiple sectors including commodities. 

SAP and Lacima’s cooperation will enable the extensive SAP Commodity Management solution to have seamless connectivity with Lacima’s energy and commodities analytics application, Lacima Analytics. Data from the SAP Commodity Management solution will feed into Lacima Analytics, to enable key analysis to be performed such as Value-at-risk (VaR), Earnings-at-Risk (EaR), and Gross Margin-at-Risk (GMaR), as well as portfolio scenario analysis and stress testing.  The collaboration also creates a unique opportunity for both companies to share technical insight and identify new opportunities for growth.

Richard Philcox, Global Product Owner, Commodity Management Solutions at SAP said, “SAP identified the need to augment its SAP Commodity Management solution with state-of-the-art market and credit risk metrics, from VaR for market risk of traded portfolios, through to cashflow based metrics like EaR and GMaR.  In addition, we wanted a solution that used the same modelling framework to also be able to calculate credit risk metrics like Potential Future Exposure.  Our range of clients needed much more than a basic solution, they needed a best-of-breed offering, so we decided to partner with a world leader that had a team of experts to support the analytics capabilities.  After an extensive global search, we selected Lacima for its unique expertise and proven ability to provide a multi-commodity, multi-geography, multi-currency offering for both market and credit risk.”

“We are honoured to be recognised as the market leading valuation & risk analytics provider for commodities by SAP, the world leading provider of enterprise application software.  Globally SAP is recognised as the leader in commodity logistics and is currently executing plans to be the leader in commodities management and we are excited to be part of this story,” remarked Chris Strickland, CEO Lacima.   “Lacima Analytics is an ideal partner application to the strength of the SAP Commodity Management solution. The SAP Commodity Management solution is available for SAP S/4HANA as well as in the SAP Business Suite software and leverages SAP’s core strengths in logistics, finance, and industry solutions. We have already, in a short space of time, made significant progress in integrating the two systems and soon SAP’s customers will be able to benefit from this integration and report on a range of market and credit risk metrics across their entire physical and financial portfolios.”

About Lacima Group

Lacima is a multi-award winning specialist provider of trading, valuation, optimization and risk management software and services for multi-commodity trading organisations. It helps customers to maximize their profit potential and make more informed decisions by providing tools that yield more accurate valuations, hedging analysis and risk exposure analysis for portfolios of financial contracts and physical assets.  Lacima has won Energy Risk Awards for the last six years, has been recognised in the Chartis RiskTech 100 and is widely recognised as a world leader in energy and commodity analytics.

Lacima Analytics is the only commercially available single application for valuation, optimization and risk management for multi-commodity/ multi-geography and/or multi-asset portfolios. The Lacima Trader suite of products for Front Office are designed to work as stand-alone trading and valuation tools capable of transparent drill down to detailed outputs and value drivers.  In a world first, deals can be analysed and then subsequently risk managed using the same models and methodologies. 

For further information, email info@lacimagroup.com

About SAP Commodity Management

The SAP Commodity Management solution delivers best-in-class procurement and sales functionality incorporating complex commodity pricing, enabling companies to accurately represent their commodity price exposure and effectively hedge to manage commodity risk. SAP Commodity Management is an integral part of SAP ERP.

For more information, visit www.sap.com.

Risk Markets Technology Awards 2019 - Lacima Pricing and analytics Commodities RiskTech 100 - 2019 EnergyRisk Software Rankings 2018 Winner - Customer Support Services EnergyRisk Software Rankings 2018 Winner - Market Risk Power EnergyRisk Software Rankings 2018 Winner - Modelling EnergyRisk Software Rankings 2018 Winner - Market Risk Gas