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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Available in CTRMCombined Position Overview

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Available in CTRMCombined Position Overview per delivery period

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Available in CTRM

Combined Position Overview

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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 epi@cadran.nl

� Marcel van Es, Sales Manager mes@cadran.nl