Latest Insight
Last Look: Natural Gas Finishes Higher After Expected Inventory Build
Read More →
Latest Insight
Last Look: Natural Gas Finishes Higher After Expected Inventory Build
Read More →
Managing Risk through State-of-the-Art Technology
MARKETS: METALS | COMMODITY: COPPER | CLIENT: METALS MANUFACTURER

Situation

A leading metals manufacturer had clear challenges in assessing the company’s true commodity risk profile and lacked proper oversight risk since nearly all hedge-related activities revolved around one person.  To top it off, that one person was managing the company’s hedge program with proprietary technology and spreadsheets. Faced with this challenge, the company was at a crossroads of investing substantial dollars to enhance the existing hedge program technology or identify a SaaS solution to meet the company’s objectives.  Given the evolving landscape of SaaS-based technology, this metals manufacturer began to assess solutions from a host of providers.  After a comprehensive market evaluation, the metals manufacturer chose AEGIS’s CTRM to seamlessly transition the company from old to new with robust functionality designed to outpace current and future technology landscapes.

The metal manufacturer’s main goals included addressing critical business needs, streamlining processes, and future-proofing their technology infrastructure to reduce IT costs while simultaneously driving operational efficiency. Key requirements include managing dynamic physical and financial commodities, generating comprehensive accounting entries, and supporting strategic decision-making through robust tracking and reporting capabilities.

 

Solution

To come up with a gameplan, AEGIS engaged with the metals manufacturer's cross-functional team during the exploration phase, gaining insights into their unique requirements. AEGIS swiftly demonstrated how its technology and solution could efficiently meet the metals manufacturer's business and technological demands. The implemented CTRM System empowers the manufacturer to navigate their physical and financial hedging environment with added automation for tracking and reporting. The transition to a SaaS-based system ensures ongoing investment and stability for the metals manufacturer now and well into the future.

 

Outcome

The metals manufacturer and AEGIS committed to a long-term partnership to tailor the CTRM System to align with their specific needs and business environment. This industry-leading SaaS-based solution, backed by AEGIS's technology team, guarantees ongoing support, and leverages several application enhancements to maintain its competitive edge. By adopting the AEGIS solution, the metals manufacturer not only eliminated in-house IT maintenance and development costs, it also mitigated risks associated with an outdated system and manual processes. The transition now positions the metals manufacturer for sustained success in an ever-evolving market.

 

This testimonial is not indicative of future performance or success. Commodity interest trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. There is no guarantee that hedge program objectives will be achieved. Neither this trading advisor nor any of its trading principals offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Hedge advisory services are performed by the registered commodity trading advisor AEGIS-CTA, LLC, a wholly-owned subsidiary of AEGIS Hedging Solutions, LLC. This case study is not required to be and has not been, filed with the Commodity Futures Trading Commission ("CFTC"). The CFTC does not pass upon the adequacy or accuracy of this commodity trading advisor disclosure. Consequently, the CFTC has not reviewed or approved this case study.

Get Market Insights
delivered to your inbox daily.
 
^