Commodity Trading & Risk Management



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Commodity Trading & Risk Management Ed Pieters, CEO Cadran Marcel van Es, Sales Manager A22. OVI Case Study: Klaas Menger, Pre-sales Consultant Integrated Commodity Trading & Risk Management Module in JD Edwards. Date : Thursday, Feb 5th, 2015 Time : 10:15 11:00 Location : Dusty Building 1

Commodity Trading & Risk Management Cadran Consultancy in the Netherlands delivers a fully integrated CTRM solution built with the native Oracle JD Edwards toolset. This solution also contains a full Oracle BI package for CTRM. 2

Agenda : Cadran introduction Oracle Validated Integration (OVI) program Introduction Commodity Trading Integration with standard JDE Live-demo CTRM 3

Cadran Introduction >40 Employees >10 Years of JDE experience 500+ Years of JDE knowledge 70 Customers FOOD & CPG LIFE SCIENCES INDUSTRIAL MANUFACTURING COMMODITY TRADING Redfaire International 4

Redfaire International Joint Venture of 3 leading European Oracle JD Edwards Partners Redfaire 2002 Partners Join Forces Redfaire International 2014 Cadran Consultancy 1998 Full Speed Systems 1998 5

Presence Redfaire International EMEA Direct Presence - Austria - Belarus - Belgium - France - Germany Partner Network - Ireland - Luxembourg - Netherlands - Switzerland - United Kingdom - Czech Republic - Denmark - Slovakia - Finland - Spain - Italy - Sweden - Norway - Poland Direct presence in 10 countries 150+ Full time employees 400+ Consultants in Network 15+ Years experience 6

Agenda : Cadran introduction Oracle Validated Integration (OVI) program Introduction Commodity Trading Integration with standard JDE Live-demo CTRM 7

Oracle Validated Integration Program Objectives Cadran Grow CTRM license revenue Grow number of customers Reasons for OVI certification Global market potential is huge Selling to international customers requires Oracle certification Dutch market too small, therefore global expansion 8

OVI, why did we do this? Benefits OVI Exposure on oracle.com OVI branding Partner press Release Exposure within Oracle Sales Leverage at prospects Event Marketing 9

Oracle Validated Integration Program What does Oracle require? Data sheet Integration document Validation Test Plan Overview of Objects Extensibility Guide OVI 10

Oracle Validated Integration Program Which steps to get certified? Start 2014 - June End 2014 - September Apply for OVI certification Oracle application approval process Pay fees Deliver required documents Review Oracle Rejection on object naming conventions Object renamed according to extensibility guide Validation test (live demo to Oracle) Approval by Oracle 11

OVI, why did we do this? Exposure of our software Prospects Due to the program: 3 prospects USA 2 prospects Mexico 1 prospect Hungaria 1 prospect Equador 1 prospect Italy 12

OVI, why did we do this? Exposure of our software Oracle Sales Due to the program: In different states direct contact with Oracle Sales and Pre sales Very good exposure at Oracle sales and Pre sales Good exposure at Oracle Hungaria and got new lead Egypt Via Oracle Columbia now in contact with Oracle Ecuador Parter in Italy contacted Cadran 13

Agenda : Cadran introduction Oracle Validated Integration (OVI) program Introduction Commodity Trading Integration with standard JDE Live-demo CTRM 14

What is so special about the Commodity Market? According to the dictonary: Commodities are goods for which there is a demand and supply, are capable of being substituted by another producer, they are a homogenous good traded in bulk on an exchange market. 15

What is so special about the Commodity Market? What kind of Commodities exist? grain Quality Quantity Delivery date Weather Transport coffee Soft Commodities soybean cacao 16

What is so special about the Commodity Market? What kind of Commodities exist? aluminium Quality Quantity Delivery date Weather Transport gold Hard Commodities copper nickel 17

What is so special about the Commodity Market? Pricing of Commodities Fixed price Differential + / - Based on Fix on date Fix by Conditions Currencies Market demand Quality Markup universal market currency Market Prices quality trading 18

The CTRM solution is Multi-company, Multi-currency Contract- and Risk management module Fully integrated with Oracle s JD Edwards ERP Solution Full support of Trading, Back office and Finance activities: from Contract to Invoice 19

Overview CTRM Trading process WH origin Transform / Extract Sales Contract Shipping Advice Sales Contract Sales Shipping Advice Financing Traffic Order Financing Traffic Order Futures Weight Report Futures Weight Report Forex Sample & Reservations Long Position Short Forex Sample & Reservations Insurance 20

flow CTRM Standard JDE Flow Contract Order Print/EDI confirmation Receipt Finance Quote CTRM Flow Pre- Contract Contract Shipping Advice Weight Report Order + Finance Forex Contract Traffic Order Sample Quality Receipt Forex Option Future Sales Contract Documents 21

Sales flow CTRM Standard JDE Sales Flow Sales Contract Sales Order Pick Ship Invoice Finance Sales Quote CTRM Sales Flow Sales Contract Sales Shipping Advice Weight Report Sales Order + Forex Contract Forex Option Traffic Order Future Contract Sample Quality Documents Ship Confirm + Invoice Finance 22

Agenda : Cadran introduction Oracle Validated Integration (OVI) program Introduction Commodity Trading Integration with standard JDE Live-demo CTRM 23

Integration within JD Edwards Manufacturing Inventory Finance Sales Address Book Cadran CTRM Quality 24

What can CTRM do for you? Our solution gives you full insight and control of your CTRM business. 25

Insight in your business is vital The fully integrated Oracle BI information give you full instant insight in your business. Cadran has developed several dashboards and overview tables based on the CTRM data. 26

Insight fully integrated in JD Edwards With the new CAFE1 feature of JD Edwards E9.1 a full integration between CTRM and BI is available. 27

Analytics, Valuations, Variances etc... Manufacturing Inventory Finance Sales Address Book Cadran CTRM Quality 28

29 Available in CTRM Combined Position Overview

Available in CTRM Combined Position Overview per delivery period 30

Available in CTRM Combined Position Overview 31

Agenda : Cadran introduction Oracle Validated Integration (OVI) program Introduction Commodity Trading Integration with standard JDE Live-demo CTRM 32

Scenario: and Sales Contract + Future Contract Vendor Contract Customer Sales Contract Future Sales Future 33

Scenario: contract, Prepayment and Tender Contract 50% Tender 2,000 MT Feb 15 Receipt Voucher Manual Payment Pre Payment Tender 2,000 MT March 15 Receipt Voucher Manual Payment Manual Payment Tender 1,000 MT April 15 Receipt Voucher Manual Payment 34

Scenario: Soybean meal sales Mill Chicago 1,100 ST soybean meal Sales Contract $ 142.00 / ST Shipping Advice 25 ST per truck (44 trucks) OR Shipping Advice 100 ST per railcar ( 11 railcars) Invoice Freight Accrual Settle Payments 35

Wrapup How can CTRM help you to grow your business? Sell JD Edwards + CTRM to new markets (commodity traders) Sell JD Edwards + CTRM to new customers in existing markets (Food, CPG, Metal, Oil manufacturers) Sell JD Edwards upgrades + CTRM to existing JDE customers Extend the Oracle footprint with OBIEE 36

How to contact us? Ed Pieters, CEO Cadran epi@cadran.nl Marcel van Es, Sales Manager mes@cadran.nl 37