Consulting

Price Consulting

pictureWith fast changing global economic environment, increased flow of information and events, the financial markets in general and commodity markets in particular are witnessing volatilities like never before. Living with High Price Volatilities has become a "New Normal". Under such "New Normal" price volatilities, the key challenge faced by many procurement managers / Traders is managing the budgeted spends / Margins. Commodities over the decades have traded just above the cost of production, but the scenario has dramatically changed over the past 7-8 years. Hence the notion that commodity prices can be predicted with reasonable accuracy, based on seasonality, has taken a beating. Further, with the increased complexities and due to new trade practices and new players, “the seasonality based static Price Forecasting Models” are no more reliable. Dynamic Volatility driven, blend models are required to forecast the prices. TransGraph follows one such approach called Mapping the Market Thought with good success rates.

The new paradigm shift is causing lot of pain to the procurement managers and to the balance sheets for companies with significant commodity exposures. This has resulted in “strategic” challenges to the job of a procurement manager in addition to the “operational” challenges. Procurement managers need specialist assistance in dealing with Commodity Price Risk. TransGraph is an independent, un-biased authoritative commodity consultant which works as an extended arm of client, advising them strategies on an ongoing basis to cope with commodity risks.

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Offerings

With deep understanding of full commodity value chain and industry specific business issues, having thousands of hours of consulting expertise, Transgraph has developed following customized offerings over the years:
Engagement Services: Regular Close Interactions
   -   Client exposure analysis: Through Business Process Mapping and Transaction flow charts
   -   Customized strategy: Based on buying, selling / consumption, Inventory patterns and Financials
   -   Engagement manager interaction: Through exclusive Project Management focus
   -   Client review meetings: Through process driven approach and systems
   -   Ad-hoc research reports: With quick turnaround times
   -   Addressing client queries: With state of the art task management trackers
   -   Performance tracking: Through transparent and mutually agreed upon benchmarks
   -   Industry best practices: Adopting best practices of industry

Procurement Strategies: On Going Customized Strategies Through Long Term Association
   -   Timing the purchase: In terms of "When to Buy"
   -   Customized strategies: In terms of "How Much to Buy", "Where to Buy" and at "What Level to Buy"
   -   Month wise / shipment wise strategy: Need based short, medium and long term strategies
   -   Managing budgets: Involvement on both Buy side and Sell side

Commodity Profile and Price Driver Analysis: One Time Projects On Commodity
   -   Basic profile of commodity: Full overview of commodity Value Chain
   -   Detailed supply & demand analysis: Current and Future projection of SnD
   -   Historical price trend analysis: Seasonality, risk return Characteristics
   -   Major Price drivers’ identification: Comprehensive price driver analysis
   -   Impact of price drives on price trend: Regression analysis of drivers
   -   Price forecasting framework: Mapping the Market Thought framework

Training
   -   Knowledge sharing training program on fundamental and technical analysis
   -   Value chain analysis
   -   Price driver analysis

Benefits

-   Association with authentic and sought after commodity market specialists and there by sharing regular knowledge updates on markets through analysis reports, so that timely business alerts are in place.
- Customized strategies which are implementable in client's business context.
- Provide trading strategies taking advantage of opportunities as well as on need basis.
- Developing customized Hedge and Risk Strategies on need basis.
- Supporting procurement managers / traders on market analysis and research needs there by enabling them in their multi tasking functions.
- Transparent, objective evaluation of our performance based on pre-agreed benchmarks and criteria. Regular review of the same for timely improvements.
- Focusing on ROI for clients with cost Vs benefit analysis of project and costs spread over years.
- Work like extended team of client's procurement / trading team taking into account clients cultural and business aspects.
- Personal visits to client’s office if needed and regular conference calls through WebEx/ Conference call to ensure close interaction.
- Sharing of cross industry best practices in procurement / trading for client's benefit subject to confidentiality agreements.
- Quick evaluation and response to ad-hoc queries of clients on markets and global economies.

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Testimonials

“ I am writing to extend my thanks for the research and price forecasting services provided to us on a daily basis by Transgraph. The reports and information whether they are emailed to us daily or sourced via your website portal, are a consistent and reliable source of quality information. Our industry is one where information and its dissemination can help in differentiating between suppliers."

- Scott Yarwood, Sr. Regional Sales Manager, ADM Trading (UK) Ltd.



“ This is to state our appreciation for Transgraph for continuously delivering on its mandate to provide updated and insightful consulting services in the area of commodities and ingredients. I would also like to thank your team that is always in touch with buyers and feeds in relevant information that has been many times useful in decision making. In nutshell, the engagement with Transgraph has been enriching."

- V. Sridhar, Sector Manager, Commodities & Ingredients, Cadbury India Ltd.



“ By helping simulate the risk scenarios beforehand, TransRisk has added immense value to our trading decision making process at the operating level. The scenarios are comprehensive because one is able to view the basis and rollover risks associated with the hedged positions too. TransRisk also serves as good Dashboard for the top management, as it gives exposures, P&L, associated risk, limits all at one place.”

- S Sivakumar, CEO, Agri Business, ITC Limited



“ At risk framework and imputed risk model of TransRisk are definitely forward looking and will enable us to move away from ‘post mortem’ approach. We can take a business decision of pricing our contracts or purchasing in advance after factoring in a quantifiable and acceptable risk instead of trying to find reasons for the breach of limits."
"A flexible and scalable business intelligence that gives exposures, P&L, associated risk, limits all at one place and this decision support system can be integrated with our existing ERP and will avoid duplication of data entry.”

- Jude Magima, ED – Sourcing and Supply Chain, Dabur India Limited



“ Transgraph has showcased that ‘Risk Management’ is an excellent tool which will help any sourcing organization to deliver in any and even during challenging business scenario. They have succeeded in creating a deeper, specific and relevant input to the automotive sector. Highly recommended, the course was extremely detailed but the faculty made it so easy to understand - Top marks.”

- S.R. Rajan, Vice President-Commercial, TVS Srichakra Limited.

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