Client Case: How to Manage Risks Across Thirty Product Groups Without Losing Your Mind

Disclaimer: We never disclose our clients’ data. All figures in this material are automatically generated, but the report formats and real-life cases are accurate.

What client has asked us:

• 1️⃣ The client wanted to see if they even had an open position. Sounds simple, but they deal with more than thirty product groups distributed across different business units. Fine, that’s manageable.
• 2️⃣ After identifying whether they had a short or long exposure, they needed to understand whether they could cover it with contracts that were nearly finalized but not yet signed.
• 3️⃣ If coverage was insufficient, they wanted to check whether their trading book included suppliers with potential availability for those products.
• 4️⃣ Once potential availability was identified, they needed to determine which of their twenty managers was responsible for that potential and assign them a task.

Out step-by-step process:

1️⃣ Position Calculation – This is straightforward. We subtract what was sold from what was purchased for a given product, delivery basis, and period. We just vizualize only the positions that exist— this part is a simple one.

2️⃣ Pending Contracts – Next, we needed deals that were close to being signed but hadn’t yet affected the position because they weren’t finalized. These deals are known as trade tickets in the system. When a trade ticket goes through internal approval via Telegram chat or Email, it gets the approved status. It’s not yet a contract, but we can assume it’s highly likely to be signed. We include the volumes from these tickets as an additional resource.

3️⃣ Potential Availability – This refers to what a farmer might have available, but they may have already sold it. At the beginning of the season, the responsible manager calls clients to assess their potential supply and records this in the system. As deals are made with the farmer, the potential decreases accordingly. If we know that a farmer has sold a certain volume to someone else, we mark that as well, giving us a clearer understanding of who we can still buy from.

👉 With this approach, we answer key questions for each product:

• Do we have an open position (short or long)?
• Will our nearest contracts be enough to cover it? (Total + Tickets)
• Will our potential availability be enough to cover the deficit? (Total + Tickets + Potentials)

Final Step – Assigning the Task

4️⃣ The last question: Who should the manager assign the task to? This was the easiest part. We simply grouped all the potential availability by responsible manager, creating a matrix where it was easy to see who had what volume.

Although the calculations and logic might seem complex, developing this dashboard took just a few hours of pure work, and the report was quickly launched into production.

We’d love to hear about your experiences working with Position Management!