DreamzCMMS Supplier Material Processing, Hedging & Settlement Management System
Use Case
End-to-end workflow digitization for managing supplier hedging, material receipt, sampling, lab assay, payment, and final settlement with real-time visibility and reporting.
The Challenge
Petra Precious Metals Recycling is a leading recycler and refiner of precious metal-bearing materials such as catalytic converters. The company sources materials from multiple suppliers globally, processes them internally and via third-party labs, and settles payments based on final assay values.
Before DreamzCMMS implementation, Petra’s operations were managed through disconnected spreadsheets and email-based communications, leading to several issues:
Manual tracking of supplier hedges, receipts, and settlements.
Delayed updates on material processing, sampling, and lab results.
Lack of centralized visibility for inventory status and financial reconciliation.
Difficulty in notifying suppliers at key milestones (e.g., assay results or settlements).
Inconsistent document management and delayed internal coordination between production, lab, and back-office teams.
Petra required a unified and traceable system that could handle every stage of the supplier transaction lifecycle — from hedging to final settlement — with automation, transparency, and audit-ready reporting.
The DreamzCMMS Solution
DreamzCMMS developed and deployed a Supplier Material Processing and Settlement Management System designed specifically for Petra’s hedging and refining operations. The system digitizes every stage of the material lifecycle and provides real-time visibility to both suppliers and internal teams, ensuring transparency, efficiency, and financial accuracy.
Core Modules Implemented
1. Hedging Management
Supports both bulk and lot-specific hedges, enabling suppliers to fix metal prices ahead of delivery.
Admins can also initiate hedging on behalf of suppliers, specifying metal type (Platinum, Palladium, Rhodium), quantities, and rates.
Automatic hedge confirmation documents are generated and shared with suppliers.
The system allows multiple hedges per lot, capturing comprehensive details for traceability.
2. Material Receipt & Valuation
On delivery, a Weight Report (NC-013) is issued to confirm lot receipt and gross weight.
The system automatically records the approximate lot valuation based on prevailing hedge or market prices.
Supplier and internal notifications are triggered at the time of material receipt.
Inventory is updated to reflect the new lot, enabling instant visibility for admin and production teams.
3. Processing & Sampling
Material processing follows a standardized workflow: De-canning → Milling → Sampling → Lab Preparation.
Each stage is timestamped, status-driven, and triggers notifications to respective departments.
Sampling results and internal lab readings are logged to track metal content and weight variations.
Processing queues and completion reports help monitor turnaround times and identify bottlenecks.
4. Lab Inspection & External Assay
Internal labs generate Preliminary Inspection Reports (AC-071) capturing sample weights, preliminary metal readings, and provisional assay values.
Samples are sent to an external third-party laboratory for final assay testing.
Once results are received, final assay data is entered into the system, including:
Precious metal concentrations
Settlement weights and payable quantities
Calculated values based on hedge rates
The assay data forms the foundation for final settlements and supplier payment adjustments.
5. Advance Payment & Final Settlement
Suppliers can request advance payments after sampling or at shipping (if hedged).
Admin calculates the Advance Payment (AYZ-047) based on the preliminary values and hedge type.
Upon receiving external assay results (typically within 10 business days), the system computes the Final Settlement (AYZ-046), factoring in:
Final assay results
Refining, treatment, and transport costs
Hedge prices and adjustments
Overpayments or underpayments are automatically reconciled via the Supplier Payment Ledger, maintaining accurate supplier balances and financial transparency.
6. Supplier & Admin Notifications
Automated alerts are sent at each key milestone:
Material received
Sampling completed
Reports uploaded
Advance calculated
Final assay and settlement issued
Internal team notifications ensure sequential task execution — e.g., after sampling, advance calculation is automatically queued for review, followed by payment authorization.
Two-week reminders ensure that pending assay or settlement processes are proactively followed up.
Reporting & Inventory Management
Inventory Reports: Track lot status (Received, Processing, Sampled, Shipped, Settled).
Lot Valuation Reports: Display estimated and final values per lot for financial analysis.
Supplier Payment Ledger: Dedicated ledger for every supplier showing all advances, settlements, and balance adjustments.
Stock Reconciliation Reports: Provide a clear overview of received vs paid vs pending materials.
Bottleneck Reports: Identify process delays in production, lab testing, or settlement.
All reports can be exported in Excel or PDF format, ensuring audit readiness.
Key Features Utilized
Supplier & Admin Portals with Role-Based Access
Hedge Creation (Bulk & Lot-Specific) and Confirmation Generation
Material Receipt & Gross Weight Recording
Processing & Sampling Workflow Management
Lab Inspection & External Assay Result Entry
Advance Payment & Final Settlement Automation
Supplier Payment Ledger with Auto-Reconciliation
Inventory Tracking & Lot Valuation Reports
Bottleneck Identification & Alert System
Automated Email & System Notifications
Key Results / Outcomes
100% digital workflow for supplier-to-settlement lifecycle.
Full traceability of every transaction with auto-generated reports and ledgers.
Real-time inventory valuation with accurate stock and payment tracking.
Reduced manual entry by 50%, eliminating spreadsheet-based reconciliations.
Improved supplier transparency through timely notifications and milestone updates.
Faster payment cycle, with seamless advance and final settlement coordination.
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