How IT Solutions Are Changing the Grain Trading Business and What to Expect in the Next 3-5 Years
Economic realities are pushing businesses to increasingly adopt new technologies for automating management and accounting processes in order to improve efficiency. Grain trading in Ukraine and CIS countries has traditionally been a rather closed and conservative industry, which is why it has long remained on the sidelines of this trend. Today, however, major market players are increasingly recognizing the value and benefits of automation and are gradually transitioning to modern technologies.
In his article for Elevatorist, GrainTrack founder and CEO Dmytro Mykhalchuk discussed how grain traders in the post-Soviet region are changing outdated business management approaches, how their innovations are already transforming the market, what to expect in the near future, and why operators should not ignore this trend.
Catching Up with the Game
Business automation refers to shifting from labor-intensive manual operations to the use of modern IT systems in day-to-day operations. Today, different types of software are used to automate business processes, each with its own focus and depth of automation. The simplest options are ERP and CRM systems, which only cover part of the processes, while more advanced solutions like CTRM systems can automate the entire operational cycle of a company.
The mass automation of business processes in the post-Soviet region began after the collapse of the USSR, as the republics transitioned from a planned to a market economy. The first wave of automation involved accounting systems. As technologies evolved, automation spread across other business processes directly related to production.
This trend has affected various sectors differently. Today, the most automated industries in the CIS are banking, trade, logistics, manufacturing, and construction. In grain trading, automation was initially limited to accounting, despite a growing trend in developed countries toward automating all business processes in the trade of grain and other commodities, such as oil and gas.
In the West, many high-quality platforms are available to optimize the operational management of grain traders — Eka, Brady, and iRely are among the best. In Ukraine and CIS countries, the situation has only started to change in recent years, as leading operators have begun automating the entire chain of their business processes, largely thanks to the emergence of specialized software for grain trading (such as 1C Zernotreyding and GrainTrack).
The Benefits of Automation
Automating business processes in grain trading is not a passing trend but a way to gain a competitive edge. Many operators are already recognizing the benefits of using innovation in management. The primary goal of automation is to ensure business stability, reduce time and resource costs, and increase efficiency and profitability.
By using specialized software for management and accounting, grain traders essentially perform the same tasks they used to do in Excel — inputting contract data and monitoring execution. However, the outcome is entirely different. Excel primarily serves as a database, while specialized software enables real-time analysis, risk assessment in the fast-changing grain market, and strategic decision-making that improves financial results.
Today’s best software can address many of the challenges grain traders face. It simplifies trading operations, allows traders to assess financial outcomes before and after a deal, provides consolidated data on all counterparties, generates reports on all transactions, forecasts trade positions and cash flows, and monitors employee performance.
Most grain trading automation tools are cloud-based, giving management the mobility to access accounting and analytical data from anywhere in the world using any mobile device.
Growth Factor
To date, only a portion of large and medium-sized grain traders in the CIS have embraced business process automation. However, market trends indicate growing interest in new management technologies. As more companies adopt automation, it will increasingly influence the entire grain trading market.
Several key trends will shape the market in the coming years:
Unification of Operational Practices and Documentation
Currently, grain traders in the CIS follow different business process sequences. This lack of standardization in deals and documentation — from purchase and sales contracts to logistics registries — creates inefficiencies in deal-making. Traders must constantly align their actions and documentation to the standards of different companies.
Automated management via modern CTRM systems simplifies this process by implementing a unified workflow from contract signing, through execution and invoicing, to automatically generated reports. Additionally, the use of standard document templates in such systems helps establish a unified documentation practice. CTRM systems can also recognize and standardize data from transport registries in Excel, helping to produce uniform documents.
Increased Supply Chain Reliability and Transparency
Gone are the days when grain traders would work with counterparties without proper documentation or proof of their reliability. Today, serious players insist on verifying their partners before entering into deals. Ideally, companies want certified suppliers throughout the supply chain to mitigate reputational and financial risks.
Automated management systems help grain traders address this challenge with flexible compliance management features. As more companies verify their clients within a single CTRM system, the market becomes more transparent, allowing operators to share information about counterparties within the platform.
Digitalization of Grain Trading and Integration with Trading Platforms
In recent years, the methods for finding counterparts in grain trading have evolved. A significant portion of the market now operates through social media groups and messaging apps. Meanwhile, specialized electronic commodity exchanges for grain trading are emerging across the CIS. A significant share of the market has already moved to these platforms.
CTRM software providers are planning to integrate with these electronic exchanges into unified systems. This is no longer a distant plan — preparatory work is already underway. Once this integration happens, users will gain powerful tools to track market prices, communicate with other traders, and execute deals within a single system.
Accelerated Business Operations
Players operating under the same system, following the same business process sequence and using the same documentation, will find it easier to collaborate. This will enhance both the reliability and profitability of their businesses.
In conclusion, while grain traders in the post-Soviet space may have been slower to adopt technology compared to other industries, they have started the transition to modern management and accounting solutions. Specialized software is already providing significant advantages to grain traders, and as more users adopt these solutions, the grain trading industry itself will evolve. Ignoring the trend toward automation risks leaving companies far behind their competitors.
You can apply for a free demo version of GrainTrack here.