How Oracle EPM Drives Resilience in a Turbulent Global Economy

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Strategic Clarity Amidst Global Uncertainty

Strategic clarity in these volatile times is no longer an aspiration but a necessity for businesses. It is increasingly important and urgent—for executives to know where to source, process, and sell their products amidst spiking tariffs, unsettled geopolitics, and disrupted trade routes across the globe. Business leaders are often required to make critical decisions within a matter of days or weeks. For instance, the Trump administration’s Liberation Day policy tariffs were announced in the US with immediate effect, giving businesses just a few days to react. Such urgent decisions may be further influenced by subsequent bilateral trade agreements as global trading orders undergo a reset. 

In addition to tariffs, trade routes have become a major concern for procurement departments. Disruptions in the Red Sea have significantly increased trading costs. In December 2023, Maersk had to pause all sailings through the Red Sea for 48 hours due to attacks from Houthi rebels. Kuehne + Nagel had to reroute more than 100 ships from the Suez Canal via the Cape of Good Hope, adding over 6,000 nautical miles and an additional three to four weeks to delivery timelines—ultimately driving up oil prices. This uncertainty is compounded by exchange rate fluctuations triggered by seismic local and global events, such as the Russia–Ukraine war, escalating tensions in the Middle East, climate-related disruptions affecting commodity prices, and national policy decisions impacting oil production or energy costs. 

With such volatility in the macro environment, how do executives maintain a resilient supply chain? How do they make sense of data points that change daily? Most importantly, how do they make the right decisions—timely and backed by sound evidence? 

Without strategic clarity, leaders are not where they need to be: in the driving seat. 

Enter Oracle’s Enterprise Performance Management (EPM)

Oracle’s Enterprise Performance Management (EPM) platform is a sense-making solution that empowers executives to make informed decisions. EPM delivers data-driven insights that help leaders move away from reactive firefighting and make proactive decisions before issues impact the company’s bottom line. 

EPM in Commodity Trading

Let’s consider a hypothetical company as an example to explain EPM’s role – AgroTradica Ltd, a Singapore-based company trading global agricultural commodities such as palm oil, soybeans, edible oils, and sugar. It sources raw materials from Brazil, the US, Malaysia, and Indonesia, and sells finished products in high-tariff markets such as the EU, India, China, and the US. 

AgroTradica’s export margins are highly sensitive to newly introduced tariffs and duties. EPM’s scenario modelling capabilities can help the company assess localised production shifts. Planners can compare shipping, tariff, and compliance costs for exports from production facilities in Indonesia against the capital and operational expenditures required to set up a refinery in India or Africa. These are long-term investment decisions, and EPM’s inputs on time-to-market are crucial for planners making such recommendations. 

Trading Insights from Market Indices

EPM can integrate data from external platforms to deliver real-time market intelligence. For example, it can source data from the Baltic Exchange, which provides global shipping rates, freight trends, and maritime market conditions. Using the Exchange’s daily indices, EPM can access up-to-date shipping costs for bulk commodities across specific vessels and trade routes. These data points act as key inputs into EPM’s cost planning models, enabling procurement teams to identify alternative suppliers and sourcing routes. 

EPM can also combine shipping trends with commodity prices and supplier delivery data to simulate future logistics costs and assess their impact on unit margins, working capital, and delivery schedules.

Moreover, Oracle EPM can be configured to ingest risk-related insights from sources like the Lloyd’s Register, enhancing an organisation’s ability to mitigate shipping and logistics risks. Lloyd’s Register provides data on maritime incidents, cybersecurity vulnerabilities, and ESG performance of fleets. Leveraging this data, AgroTradica can use EPM to calculate Scope 3 emissions for exports to regions like the EU, where regulations such as Digital Product Passports will soon require carbon footprint declarations for every product. EPM can also help identify carbon-intensive trading lanes and recommend cleaner alternatives. 

These rich insights—derived from both external and internal data—support informed executive decision-making. For instance, strategic workforce planning can be modelled using data from HRIS (Human Resource Information Systems) to avoid over-hiring or under-resourcing during periods of market uncertainty. EPM ensures that no decision is made in isolation. 

Strategic Visibility for the Boardroom

While EPM equips departmental heads with strategic insights for quick, impactful decisions, it also enables the C-suite and board to visualise the bigger picture. Scenario-based reports can present revenue at risk due to tariff changes, ROI forecasts for localised production, and ESG and compliance risks related to trading routes. 

The introduction of Oracle’s embedded Generative AI capabilities further enhances decision-making. Executives can now ask questions in natural language and receive contextual, curated insights. Agentic AI can reduce lead times by providing faster, more accurate information tailored to the organisation’s needs. 

Summary

Oracle’s EPM platform is an integrated business planning solution designed to equip executives with the strategic clarity needed to navigate uncertainty. Beyond protecting costs, it enables businesses to foster a proactive, resilience-driven approach—ensuring long-term success in an unpredictable world. 

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