Web-based dairy supply chain services and market intelligence leader Dairy.com has enhanced its online trading exchange. The addition of new features and rollout of a new pricing model count among the most important changes made to the platform since its debut in 2001.
After industry testing and feedback, Dairy.com is releasing its Physical Settlement and Pricing enhancement. “Settlement” automates the process around reconciling weights and tests and valuing cream loads—a critical but time-consuming process for the industry until now.
With Physical Settlement and Pricing, each cream load simply requires entry of shipped and received weights and component tests by the corresponding parties; the rest is automatic. From the perspective of either party, the result is one-step settlement, providing consistent, high-quality settlement and load value records for both parties.
“We’re excited to introduce technology streamlining a settlement process that has always burdened the dairy industry,” said Mitch Norby, president of the Technology Division at Dairy.com. “Through the use of pre-defined parameters and tolerances, nearly all loads can be automatically settled, which is a vast improvement over an otherwise time- and labor-intensive process.”
As of October 1, a new price schedule for the Trading Exchange has been introduced. Dairy.com Spot Cream Market prices will fall from $199 to $99 per side, per transaction, and all other cream loads will be traded at $20 per side, per transaction. In order to encourage adoption of the new settlement feature, Dairy.com will provide a discount of $5 per side, per transaction when the feature is used on 90% or more of a customer’s cream transactions per month.
Additional details can be found at Dairy.com.