Commodity Trading & Risk Management

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C

ommodity

T

rading &

R

isk

M

anagement

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, 2015 Time : 10:15 – 11:00

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Commodity T

rading & Risk Management

Cadran Consultancy in the Netherlands delivers a fully integrated

CTRM solution built with the native Oracle JD Edwards toolset.

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Agenda :

Cadran introduction

Oracle Validated Integration (OVI) program

Introduction Commodity Trading

Integration with standard JDE

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Cadran Introduction

>40 Employees 70 Customers >10 Years of JDE experience 500+ Years of JDE knowledge

LIFE SCIENCES INDUSTRIAL MANUFACTURING

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Redfaire International

Redfaire International 2014

Partners Join Forces

Redfaire 2002

Cadran Consultancy 1998

Full Speed Systems 1998

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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

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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

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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

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Oracle Validated Integration Program

Data sheet

Integration document

Validation Test Plan

Overview of Objects

– Extensibility Guide OVI

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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)

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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

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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

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Agenda :

Cadran introduction

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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?

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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

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Overview CTRM

Trading process

Futures Purchase Contract Purchase Shipping Advice Traffic Order Weight Report Forex _Position Futures Sales Contract Sales Shipping Advice Traffic Order Weight Report Forex Long Short Purchase Sales Sample & Reservations Sample & Reservations Transform / Extract WH origin Financing Financing

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Purchase flow CTRM

Purchase Contract Purchase Quote Purchase Order Print/EDI confirmation Purchase Receipt Finance

Standard JDE Purchase Flow

Purchase Order Purchase Receipt Finance Purchase Contract Pre-Contract Purchase Shipping Advice Forex Contract Future Traffic Order Weight Report + CTRM Purchase Flow Sample Quality Forex

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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 Traffic Order Weight Report + CTRM Sales Flow Sample Quality Pick +

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Agenda :

Cadran introduction

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Address Book Finance Purchase _Inventory Sales Quality Manufacturing Cadran CTRM

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What can

CTRM

do for you?

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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

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Insight fully integrated in JD Edwards

With the new CAFE1 feature of JD Edwards E9.1 a full integration

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Analytics, Valuations, Variances etc...

Address Book Finance Purchase _Inventory Sales Quality Manufacturing Cadran CTRM

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Available in

CTRM

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Available in

CTRM

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Available in

CTRM

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Agenda :

Cadran introduction

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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 MT Feb ‘15 2,000 MT March ‘15 1,000 MT April ‘15 Receipt Receipt Manual Payment Voucher Manual Payment Voucher Manual 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

Freight Accrual

Settle 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

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How to contact us?

Ed Pieters, CEO Cadran [email protected]