We’ve partnered up with CommodityAI to integrate their next level AI platform into our flagship CTRM software solution – unlocking a myriad of fresh advantages for the commodity trading industry at large.
We’ve recently listed 4 ways artificial intelligence will impact the commodity trade, including its prowess in reducing complexity, mitigating risk and streamlining paper trails. We could have easily added a fifth one – the CommodityAI platform – but decided against it. Their suite of applications is specifically designed to automate operations for commodity traders and producers and for that alone it deserves its very own article. A ‘listicle of one’, if you will. Moreover, CommodityAI is doing something quite unique by wielding the power of AI to enhance your existing solutions. And the best part? It can now be part of Agiblocks too. We sat down with Philip Koenig and Daniel Cervoni, who’ll tell you all about it.
AI in the commodity trade
As artificial intelligence and the benefits of machine learning are finding their way into our customs and habits in all walks of life, you can bet that they will become more commonplace in the commodity industry as well. We’ve addressed just four specific examples of what AI can bring to our trade – and indeed to Agiblocks – but that short list is hardly exhaustive. There are opportunities in both the CT- and the RM-part of commodity trading and risk management software, while new developments are taking root.
From validating logistics data, determining the optimal path along the supply chain and forecasting deliveries, to improving regulatory compliance, tackling imbalances and calculating complex (future) prices – we are very excited that the future is here. And Agiboo is ready for it, as the 4.0 version of Agiblocks is uniquely equipped to match all that potential. What’s really got us excited in that brave new world of possibilities though, is what CommodityAI brings to the table with their AI-driven platform.
Introducing: CommodityAI
CommodityAI improves how commodity traders and distributors manage their shipments as a means to optimize their daily workflow. “We’re enhancing your control over your commodity trading operations through end-to-end shipment management, advanced tracking and AI-driven performance insight”, says Philip Koenig.
CommodityAI was founded by Philip Koenig, Daniel Cervoni and Kyle Franz. Their collective background and experience in both the trading industry and software engineering for leading logistics and software companies make them uniquely suited to build for the industry. With an aim of creating the digital infrastructure to eliminate inefficiencies in commodities trading, they’re focusing on a universal challenge that’s inherent to commodity companies: Maintaining agility and control over ever-changing commodity supply chains.
Given that our mission at Agiboo has long since been to simplify and streamline the daily practices of commodity trade professionals, it’s not difficult to see where the overlap in vision and philosophy is – and indeed where our enthusiasm to collaborate comes from.
One of their customers, a US-based sugar trader and distributor, uses CommodityAI to gain greater visibility and control over inbound and outbound ocean shipments. The platform enables them to classify documents, extract relevant fields, and organize them by shipment. “We take unstructured data from documents and ERP systems and convert it into structured data. This data’s made AI-ready and packed into powerful automation that lets teams hand off low-value, error-prone tasks like sending shipment status updates and generating vessel nominations,” Koenig adds.
The paperwork problem
In our industry, as much as half of a given commodity company’s workforce is dedicated to logistics and operations, thanks to the complex nature of managing shipments. What’s worse, is that up to two-thirds of the budget is allocated to administrative paperwork. That’s hundreds of processes, emails and phone calls and a labyrinth of documents – which is then multiplied by the number of actual shipments.
We know all about that complexity: any CTRM solution worth its salt needs to handle the general complexities of a commodity while providing features such as usability, performance and integration for all the daily challenges involved. “Our goal is to take the number of manual processes within a commodities shipment all the way down to 0,”, says Koenig – “transforming the way companies manage their operations.”
Again, it’s fair to say that CommodityAI and Agiboo are cut from the same cloth: finding ways to streamline your day-to-day, and using smart software solutions to do so. And have we mentioned that they specialize in the same agricultural commodities that we do?
A second part of the problem is the fact that no two companies deal with these challenges in the same way. “This makes it difficult to build a one-size-fits-all solution without being intimately familiar with the space and the nuances of these shipments”, says Daniel Cervoni. “What all shipments have in common though, regardless of the terms of the contract, is that you’re moving goods from A to B. We want to do that as effectively as possible.”
The smart solution
“Through our shared experience and the many years that Philip has worked in the industry, we saw that there was a lot of opportunity for automation”, adds Cervoni. “Of course, you have Agiboo and many of your peers who are strong in CTRM solutions, but where we add value is putting a layer on top of that by wielding what AI has to offer.”
“One-size-fits-all generic solutions don’t work, because commodities are too specific. It has to be tailored to those needs – as you well know. You offer a great product in Agiblocks, so much innovative functionality and abilities to organizing data in a meaningful way. We complement that approach with our platform.”
Today, that solution is a product focused on shipment-related documents and data, but they’re just getting started – as a recent round of investment financing neatly underscores. That offers a great perspective for Agiblocks users who are interested in getting started with the CommodityAI platform as well. When you add new layers to your software, you want to know that the provider will be around in the years to come for support and continuity.
Unique selling points
“We are not alone in providing such an added layer of functional software, but the ones who offer something similar are not doing what we’re doing on terms of their grasp on AI. In other words, the platform CommodityAI offers is very much a unique cure for the well-known ailment of paperwork mania from that perspective – and a proper next step in our shared goal of making the daily practices of commodity trading professionals more efficient.
“In the end, we wanted to explore the possibilities of AI to help automate a lot of the manual tasks in commodity trading and drive smarter decision-making as well – as it would allow you to interact with your data and derive better insights. Agiboo can help us do that tenfold, by integrating our solution into the ecosystem of Agiblocks.”
In terms of actual integration of the CommodityAI platform into the Agiboo software, the team is eager to get started for Agiblocks users who are excited to try it out. “We’ve built the platform ready for a general integration, where we mix and match with the most commonly used tiles in the Agiblocks dashboard – allowing us to find the plug & play opportunities to get started. Demanding on company size and what it is they want and need from Agiblocks, we can set up the full integration in a matter of days.”
CommodityAI & Agiblocks: find out for yourself!
Right now, several Agiblocks users are getting started with CommodityAI to improve their automation, streamline their workflow and enhance their data-driven decision-making. If you’re interested in having the team demo their latest solution, reach out to us here!
