The buyer typing and order pricing system is part of Talman’s WOOLBUYER software, designed around a comprehensive industry database that contains all possible wool data of interest to any sector of the wool industry.
‘ABS’ will assist wool buyers in the following areas:
- Type input and validation. While each buyer will normally have a unique typing system, the AWEX-ID typing structure is automatically provided if requested.
- Automatic calculation of buying limits for catalogue lots, based on a master price file for types, price groups and sale accounts (orders), as well as qualifier discounts and premiums.
- Automatic calculation of market quotations, based on sale results picked up from the industry EDI network.
- Printing of market selection and other market analysis reports.
Typically, buyers will use Talman’s typing and order pricing system or ‘ABS’ as follows:
Pick up auction or private catalogue
For each sale, catalogues must be picked up from the Wool Industry Network as soon as brokers make these available.
Catalogues for individual brokers or catalogue groups e.g. MFLC may be selected.
Progressive pickup of catalogues and resending of amended catalogues from the same broker is fully supported, as well as optional suppression of unnecessary data from the catalogue. The latter allows for a considerable reduction in transmission costs.
Process auction or private catalogue file
The catalogue transmission file is checked to ensure that the correct catalogue data has been received and that this data is correctly formatted.
The file is then processed, updating the lot and core test file within ‘ABS’ with all information stored in the catalogue.
Update sale accounts (orders, stock groups)
This function will very much depend on a buyer’s method of trading. Order information could be maintained centrally and down loaded to each buyer team notebook, as well as the main WOOLBUYER system.
The following information is generally required:
- Master stock groups (if any). These will be used for eventual allocation of purchased lots to stock rather than to an order or batch.
- Master orders (if any). These will be used as templates to create new orders, or for standing (permanent) orders used for purchasing wool.
- Current firm offer, indent orders and processing batches. These include all outstanding orders and batches where a set buying quantity is specified. These will be used for eventual allocation of purchased lots.
A very comprehensive set of parameters allows exact specifications of the order or the batch to be set.
These include top making as well as core certificate parameters.
Where more than one type is suitable for an order or batch, these types may be linked to via a standard recipe rather than needing to be specified each time.
Standard type recipes may be created, or specific type recipe records applicable to that order only may be nominated as part of creating an order or batch.
Any mixture of types may be recorded as suitable for an order or batch, and desired percentages of each type may be specified.
Input of types and sale accounts
Buyers will have appraised the wool on the show floor and allocated a type and/or a sale account (order, batch or stock group).
Types and sale accounts are used as follows:
Each lot may have up to five different types. These may in turn be related to master price records for that type for later calculation of limits.
- Each lot may have up to four specific sale accounts (orders, batches, stock groups) allocated. These represent sale accounts to which this lot could be allocated if purchased. These sale accounts may in turn be related to master price records for that sale account for later calculation of limits.
- Each lot may be indirectly linked to sale accounts (and their corresponding master prices) by the same type appearing on both the lot or the sale account. In this case the type on the sale account (or its recipe) indicates that this type is suitable for that sale account.
Input may be either via hand held units (see above) or via a special input program on the notebook.
This input program displays each catalogue lot and allows input of types (including qualifiers or type prefixes and suffixes) as well as sale accounts.
Even where these were input via hand held units, the notebook-based program may be used to change or add further types and sale accounts within a catalogue.
If type input is done on the show floor using hand held units as each sample is inspected, only minimal type validation is possible and a further type validation stage is required.
Alternatively, types may be input direct from a paper catalogue or typing sheet and then validated.
Validation may be done either within the type input program, or via a separate type validation report.
Type validation will check allowable types and qualifiers, generate any missing qualifiers, and where possible validate types against their allowable core test results and suggest alternative corrected types.
All catalogue lots should have valid types before pricing can take place.
The offering may be analysed at any stage via the selection function.
This analyses the offering by buyer type, micron and optionally by VM, strength and greasy or top makers length.
Client requirements may be used to automatically search the offering for suitable lots.
Selection reports may be displayed or printed in both detailed and summarised forms.
As well, selection reports may be exported for use by head office in a variety of formats. These include Internet electronic mail.
Create a pricing basis for the new sale
Before pricing can take place, a set of master prices must be created for all types and sale accounts to be used in pricing lots.
These master prices may be derived from market quotes, overseas limits or from sale prices of outstanding orders.
Multiple prices may be stored for the same type or order. These may be classified as firm offer, indent, stock or pick up prices.
In addition, prices may be stored by region (e.g. state) or even centre. This allows a central PC to store and set up prices for all buying regions.
A global price update program allows:
- Copying of previous master prices to a new master price basis for that sale or week.
- Easy adjustments of groups of master prices by a set percentage or clean cent amount. Such adjustments may reflect expected or actual rises or falls in the market, and may be restricted to specific micron ranges, types and sale accounts.
- Adding or changing of individual master prices.
Transfer master prices to buyer notebooks (optional)
Where a central PC is used to maintain master prices, these may then be transferred to each buyer’s notebook for catalogue pricing.
Transfer could be via a variety of communication methods e.g. electronic mail.
Adjust qualifier discounts and premiums
These may be updated based on the previous market quotes and the expectations of which prices are to be bid at auction.
In general, these discounts for VMB, tender, seed, colour, etc would not necessarily be adjusted for each sale.
They are mainly used for stock buying, rather than for wool purchased against specific order limits.
Process lots to calculate bidding limits
Individual lots are then valued according to the above master prices as well as any qualifier discounts applicable to individual types.
Several limits may be calculated for each lot, but only the six highest prices are recorded.
Each lot is also updated with information showing from where the bidding prices were derived (type, sale account, etc). This will be printed on the bidding catalogue.
Print a bidding catalogue
A bidding catalogue is printed in exactly the same format as the broker’s original catalogue.
The four highest bidding prices, together with associated information, are printed for each lot.
Additional information, such as top making hauteur, noil percentages and coefficients may optionally be printed.
This catalogue is then used in the sale room to bid for wool.
Pick up sale results
As the auction proceeds, progressive sale results may be picked up from the Wool Industry Network.
The buyer’s notebook will request a sale result (lot price and buyer) file, check this and process the file.
Processing the sale result file will update each lot with the sale price and buyer.
Direct access in the sale room to this sale data is available in Australia.
Check for missing sale results
A report is available that indicates what sale results are missing. These may be input manually if required direct from the bidding catalogue.
To calculate quotations for a sale, sale result (lot price and buyer) data must have been picked up from the Wool Industry Network and updated against each lot.
Once this has been done, quotes based on clean COF or any CIF, FOB or C&F price basis may be calculated whenever required.
Quotes may be analysed by type and micron, with further optional analysis by VMB, strength and greasy or top making length.
The user may set the core test ranges used for each micron, VMB, length and strength quote.
Client parameters held on orders or input within the quote function may be used to automatically calculate quotes for specific client orders.
While a single set of current quotes is all that is required by most buyers, ‘ABS’ does allow storing of previous sales quotations for inquiry and analysis purposes. These may even be stored by region or sale centre.
Calculated quotes may automatically be adjusted by including or excluding individual lots as well as a wide variety of calculation methods.
Calculated quotes may be stored for later use as limits, or be sent to external parties via electronic mail.a
Allocate purchased lots to sale accounts
Lots that have been purchased may be allocated to orders or stock groups before being transferred to the main WOOLBUYER system.
Allocation will default to those sale accounts linked to the lot either directly or via the type on the order and recipe.
The new windows averaging and allocation program may be used to do this.
Export purchased lots to main system
A file containing details of the purchased lots will be transferred from ‘ABS’ to the buyer’s main WOOLBUYER system.
This replaces manual purchase sheets.
The transfer file is formatted as per the existing lot transfer file used within WOOLBUYER.
If you would like to enquire more about the Wool Auction Buying software please contact the support team at firstname.lastname@example.org