Bring predictability to feed procurement

SAP Agricultural Contract Management (SAP ACM) is a comprehensive solution designed to streamline the entire life cycle of agricultural contracts, from initial creation to final settlement. It acts as a single source of truth, ensuring complete transparency and consolidated settlements. Key functions include managing diverse contracts, handling dynamic pricing updates, and providing sophisticated risk management capabilities for commodity contracts. It's a highly flexible and automated platform compatible with all types of agricultural agreements.

msg global offers end-to-end services for SAP Agricultural Contract Management, leveraging our deep industry expertise and long-standing partnership with SAP. We provide tailored consulting services, strategic guidance, and architecture planning from industry experts to support your transformation journey. Our ACM specialists work as a closely integrated team, continuously sharing knowledge and refining best practices across engagements — ensuring that every client benefits from collective experience rather than individual expertise alone. Our services include full implementation and rollout, technical optimization to enhance system performance, and dedicated analytics to enable data-driven decision-making. We also engage in co-innovation with SAP to ensure our clients benefit from the latest advancements and provide ongoing support and maintenance to keep your environment aligned with changing business needs.

Yes, a global leader in food processing and agricultural commodities, successfully implemented SAP ACM. The project aimed to enhance customer service, shareholder value, and employee empowerment by adopting leading practices and technologies. msg global helped address challenges such as dynamic pricing requirements, complex settlements, scalability across multiple commodities and countries, and the need for full transparency and real-time risk management. The implementation resulted in enhanced data-driven decisions, streamlined processes, greater transparency and control over operations, and improved operational efficiency. For project details, please get in touch with us for an official reference.

Agricultural businesses often face several challenges, including managing contracts across multiple, disparate systems, which increases complexity and manual effort. Complex settlements, especially with price fluctuations, can be difficult to consolidate and view across different operational domains to ensure proper information flow across departments, such as sales, controlling, and logistics. Additionally, exposure to commodity price volatility requires continuous monitoring of open positions and net exposure, which is nearly impossible to manage accurately without an integrated system. SAP ACM addresses these by consolidating contract-related activities into a single platform, providing real-time information, and automating processes to reduce inefficiencies and operational costs. Its built-in position management and mark-to-market valuation capabilities give trading and procurement teams the visibility needed to make timely hedging and pricing decisions.

Implementing SAP ACM brings several significant benefits. Built-in tools provide complete visibility into commodity contracts and dynamic pricing updates to help mitigate risks effectively. Users benefit from real-time information on contract performance, inventory status, and risk assessment, enabling informed decision-making. Overall, SAP ACM leads to structured cost control, enhanced operational alignment, and end-to-end transparency across the full contract lifecycle, ultimately strengthening cost control and supporting margin stability.

SAP ACM is specifically designed for the complexities of agricultural commodities. It supports commodity-specific contract and pricing structures, including discount and premiums quality-based schedules, seasonal pricing, and the management of quality and quantity variances caused by external factors. It offers robust pricing features like future and basis pricing components, flat pricing, price lifts, and price rolls, enabling effective commodity pricing management. For risk management, it provides tools to address risks specific to agriculture, such as crop yield fluctuations, supply chain disruptions driven by seasonality, and quality-related risks, offering real-time visibility and control to mitigate them effectively. It also integrates with tools for hedging activities and manages supplier advances and pre-finance agreements directly within contract settlement.