commodity trading & risk management - oracle · integrated commodity trading & risk...
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Commodity Trading & Risk Management
Ed Pieters, CEO Cadran
Marcel van Es, Sales Manager
Klaas Menger, Pre-sales Consultant
A22. OVI Case Study:
Integrated Commodity Trading & Risk Management Module in JD Edwards.
Date : Thursday, Feb 5th, 2015Time : 10:15 – 11:00Location : Dusty – Building 1
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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.
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Agenda :
� Cadran introduction
� Oracle Validated Integration (OVI) program
� Introduction Commodity Trading
� Integration with standard JDE
� Live-demo CTRM
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Cadran Introduction
>40Employees
70Customers
>10 Years of JDE experience
500+Years of JDE knowledge
LIFE SCIENCES INDUSTRIAL MANUFACTURINGFOOD & CPG
Redfaire
International
COMMODITY TRADING
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Redfaire International
Redfaire International
2014
Partners Join Forces
Redfaire 2002
Cadran Consultancy
1998
Full Speed Systems
1998
Joint Venture of 3 leading European Oracle JD Edwards Partners
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Presence Redfaire International EMEA
Direct Presence
Partner Network
- Austria- Belarus- Belgium- France- Germany
- Ireland- Luxembourg- Netherlands- Switzerland- United Kingdom
- Czech Republic- Denmark- Finland- Italy- Norway- Poland
- Slovakia- Spain- Sweden
150+ Full time employees
15+ Years’ experience
400+ Consultants in Network
Direct presence in 10
countries
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Agenda :
� Cadran introduction
� Oracle Validated Integration (OVI) program
� Introduction Commodity Trading
� Integration with standard JDE
� Live-demo CTRM
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Oracle Validated Integration Program
– Grow CTRM license revenue
– Grow number of customers
– Global market potential is huge
– Selling to international customers requires Oracle certification
– Dutch market too small, therefore global expansion
Objectives Cadran
Reasons for OVI certification
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OVI, why did we do this?
� Exposure on oracle.com
� OVI branding
� Partner press Release
� Exposure within Oracle Sales
� Leverage at prospects
� Event Marketing
Benefits OVI
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Oracle Validated Integration Program
� Data sheet
� Integration document
� Validation Test Plan
� Overview of Objects
– Extensibility Guide OVI
What does Oracle require?
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Oracle Validated Integration Program
Start 2014 - June
End 2014 - September
Which steps to get certified?
• 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
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OVI, why did we do this?
� Prospects
Due to the program:
– 3 prospects USA
– 2 prospects Mexico
– 1 prospect Hungaria
– 1 prospect Equador
– 1 prospect Italy
Exposure of our software
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OVI, why did we do this?
� 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
Exposure of our software
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Agenda :
� Cadran introduction
� Oracle Validated Integration (OVI) program
� Introduction Commodity Trading
� Integration with standard JDE
� Live-demo CTRM
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� “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.”
What is so special about the Commodity Market?
According to the dictonary:
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What kind of Commodities exist?
What is so special about the Commodity Market?
Soft Commodities
grain
soybean
cacao
coffee
� Quality� Quantity� Delivery date� Weather� Transport
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What kind of Commodities exist?
What is so special about the Commodity Market?
Hard Commodities
aluminium
copper
nickel
gold
� Quality� Quantity� Delivery date� Weather� Transport
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Pricing of Commodities
What is so special about the Commodity Market?
Market Prices
currency
trading
quality
universal market
� Fixed price� Differential + / -� Based on� Fix on date� Fix by� Conditions� Currencies� Market demand� Quality Markup
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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
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Overview CTRM Trading process
Futures
Purchase
ContractPurchase
Shipping Advice
Traffic Order
Weight Report
Forex Position
Futures
Sales
ContractSales Shipping
Advice
Traffic Order
Weight Report
ForexLong Short
Purchase Sales
Sample & Reservations
Sample & Reservations
Transform / ExtractWH origin
Insurance
Financing Financing
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Purchase flow CTRM
Purchase Contract
Purchase Quote
Purchase Order
Print/EDIconfirmation
Purchase Receipt
Finance
Standard JDE Purchase Flow
Purchase Order
Purchase Receipt
Finance
Purchase Contract
Pre-Contract
Purchase Shipping Advice
Forex Contract
Future Sales
Contract
Traffic Order
Weight Report
+
CTRM Purchase Flow
Sample Quality
DocumentsForex Option
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Sales flow CTRM
Sales Contract
Sales Quote
Sales Order
Ship Invoice Finance
Standard JDE Sales Flow
Sales Order
Ship Confirm
Finance
Sales Contract
Sales Shipping Advice
Forex Contract
Future Purchase Contract
Traffic Order
Weight Report
+
CTRM Sales Flow
Sample Quality
Pick
+
DocumentsForexOption
Invoice
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Agenda :
� Cadran introduction
� Oracle Validated Integration (OVI) program
� Introduction Commodity Trading
� Integration with standard JDE
� Live-demo CTRM
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Address Book
Finance
Purchase Inventory
Sales
Quality
Manufacturing
Cadran CTRM
Integration within JD Edwards
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What can CTRM do for you?
� Our solution gives you full insight and control of your CTRM business.
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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.
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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.
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Analytics, Valuations, Variances etc...
Address Book
Finance
Purchase Inventory
Sales
Quality
Manufacturing
Cadran CTRM
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Agenda :
� Cadran introduction
� Oracle Validated Integration (OVI) program
� Introduction Commodity Trading
� Integration with standard JDE
� Live-demo CTRM
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Scenario: Purchase and Sales Contract + Future Contract
Future Sales
Purchase Contract
Vendor
Sales Contract
Customer
Future Purchase
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Scenario: Purchase contract, Prepayment and Tender
Purchase Contract
Purchase Tender
Pre Payment
Receipt Voucher
50%
Manual Payment
Purchase Tender
Purchase Tender
2,000 MTFeb ‘15
2,000 MTMarch ‘15
1,000 MTApril ‘15
Receipt
Receipt
Manual Payment
VoucherManual
Payment
VoucherManual
Payment
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Scenario: Soybean meal sales
1,100 ST soybean meal
Mill Chicago
Sales Contract
$ 142.00 / ST
Shipping Advice
25 ST per truck (44 trucks)
Shipping Advice
100 ST per railcar ( 11 railcars)
OR
FreightAccrual
Settle Payments
Invoice
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Wrapup
– 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
How can CTRM help you to grow your business?
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How to contact us?
� Ed Pieters, CEO Cadran [email protected]
� Marcel van Es, Sales Manager [email protected]