We integrated hedging operations with ERP
to manage price volatility risk.

We connected purchases and sales exposed to precious metal prices with accounting by LOT ID, managing physical and toll-processing transactions within a single process.

INDUSTRY

Precious Metal Recovery & Refining

SIZE

1,000+ Employees

COUNTRY

South Korea

SOLUTION

AX2012

CUSTOMER

Customer

Heesung PMTech is a specialized company that recovers and refines precious metals from spent catalysts and scrap generated across industries such as automotive, petroleum, chemical, and glass, then sells the refined output. It is the only company in Korea certified with Good Delivery status by the London Platinum & Palladium Market (LPPM), producing precious metals of internationally recognized quality, and actively contributes to the circular economy through resource recycling.

BACKGROUND

Background

Given the nature of a precious metals business, price fluctuations directly translate into P&L swings. If hedging operations sit outside the system, risk can't be seen in real time.

Needed to bring hedging operations into the system to minimize precious metal price volatility risk

Needed to upgrade the purchase-based inventory (receipt/issue) management system

SCOPE

Modules Implemented

In addition to the full AX2012 module set, we developed hedging and Lot-based management features unique to this business as Add-ons.

STANDARD

Full AX2012 Module Set

Finance & Accounting Management
Procurement & Sales Management
Production & Inventory Management

ADD-ON · HEDGING

Hedging Module

Physical Hedging Module Add-on
FX Hedging Module Add-on

ADD-ON · LOT

Lot-Based Management

Precious metal receipt/issue Add-on managing agreed and assay-stage metal content data within Lot information
Lot-Level Profit & Loss Analysis Module Add-on

RESULTS

Results

INTEGRATION

Integrated Hedging Process

We implemented an integrated process linking hedging operations to both physical and toll-processing business cases. Different transaction types are now managed within a single flow.

ACCOUNTING

Accounting Integration by LOT ID

We integrated accounting by LOT ID for financial transactions related to purchases, sales, and hedge settlements, enabling profit-and-loss tracking at the transaction level.

RISK