This document discusses Commodity Trading & Risk Management for Oracle JD Edwards (CTRM4JDE), an integrated commodity trading and ERP solution. It provides key functionality like position insight, risk management, contracts, allocations, and logistics services to help users manage the entire commodity trading process and reduce risks. The solution tracks functionality releases from 2013-2019, covering areas like allocation, pricing, margin reporting, and intercompany transactions. It also discusses how CTRM modules integrate with ERP systems and how CTRM4JDE positions itself between basic buy/sell operations and full commodity trading.

1. Commodity Trading & Risk Management
for Oracle JD Edwards

2. CTRM4JDE: Integrated CTRM / ERP solution for commodity traders
Integrated CTRM & ERP
Position Insight BI & Analytics
Risk Management
Contracts Allocations
Logistics Services
Insight into Value, Price, Profit and Risk
Helps you manage the entire commodity
trading process.
Save time, make decisions and reduce the
risks of commodity trading.

3. Releases CTRM with functionality delivered
2016 2017 20182013 2014 2015
Release 1
2019
Characteristics
Delivery scheme
Allocation
Allocation Activities
Intercompany
Delivery reroute
Shipping advice
Pricing tool
Margin report
Automated creation of multiple shipment advice
to allocate sales contracts to purchase contracts;
pricing tool to enable complex pricing including
exchange pricing
Report and calculation to determine margin per
contract / transaction
1.1
Ability to specify / differentiate items using
characteristics.
Derive delivery lines from contracts to manage
physical loads as transactions.
Structure to combine multiple deliveries (sales
and purchase) into one allocations.
Use allocation structure to create workflow for
executing transactions
Ability to split and reroute quantities
during executing of the transaction.
Functionality to manage
intercompany transaction and
manage positions accordingly
2.1
2.2
3.1
3.2
3.23.12.32.11.1
Release 2 Release 3

4. Delivery Lines
Supply Contract
Counterparty B
(supplier)
(Mark)
Commodity Trader
Counterparty A
(customer)
(Daniela)
Transport
Harbor
Harbor
Standard Back 2 Back trade order
200.000 KG
50.000 KG
Delivery Lines
50.000 KG
Sales Contract
200.000 KG
Copy sales
contract details to
purchase contract
Use pre-calculation
to calculate
expected profitability
Create and plan
physical deliveries
based on contract
Transportation
Management

5. CTRM Modules
Purchase
Contract
Sales
Contract
Sales
Deliveries
lines
Purchase
Deliveries
lines
Sales
Delivery
Transport
order
Allocation
Planning
scheme
50.000 KG 50.000 KG
Purchase
Delivery

6. Sales contract basic
Pricing: Different types
of pricing: Fixed,
Quoting, Differential,
Price rules, Multi
Currency
Hedging: Position /
currency hedging
using Futures and
options

7. Contract status workflow (Oracle BI)

8. Supply
Counterparty B
(supplier)
Commodity Trader
Working from a position
Sales
Mar
Apr
May
Jun
Jul
Counterparty A
(customer)
12
14
11
13
09
11
13
12
11
11
Buy Sell
Position per month,
counterparty and
quality
Ability to match and
allocated shipments
Purchase and Sales
M2M and Credit Risk
Use allocations to
plan logistics services
and workflow
Allocation
Blending
Storage
Farming
Storage
Blending
Intercompany
Planning
scheme

9. BI reporting position per product Today

10. Currency position

11. Supply Contracts
Counterparty A
Commodity Trader
Counterparty B
Storage & Blending
Sales Contract
Counterparty D
Counterparty E
Counterparty C
Blending /
production
Raw materials
Raw materials
Commodity
Lot Costing
Forward and
Backwards planning
Full “track & Trace” from
Supplier lot to customer delivery
Use of “workorders”
and “receipts”.

12. Integration ERP and CTRM
SalesPurchase
-$ -$ -$ -$ $
Pre-calculation versus post-calculation
∑
Manufacturing
costs
Storage costs
Transportation
costs
-$
Transshipment
costs

13. Characteristics
Char1 = GRAMMAGE = optional
Char2 = REELWIDTH = optional
50.000 KG
Deliveries
50.000 KG
50.000 KG
50.000 KG
GRAMMAGE = 500 GR
REELWIDTH = 1070 mm
-> + $ 30,- per TM
Purchase Contract
200.000 KG
During allocation
execution characteristics
can be adjusted / fixed
to reflect the shipped
quality and quantity per
delivery.
Characteristics can have
defaults, optionality's
and price implications
Options on characteristics need
to be fixed during allocation
GRAMMAGE = 450 GR
REELWIDTH = 1080 mm
-> + $ 25,- per TM
GRAMMAGE = 550 GR
REELWIDTH = 1060 mm
-> + $ 40,- per TM
GRAMMAGE = 500 GR
REELWIDTH = 1080 mm
-> - $ 20,- per TM
Allocation

14. Allocation
Counterparty A
Call-off
Price
Date
Quality
Quantity
Commodity Trader
Supply Contract
Storage
Blending
Price
Date
Quality
Quantity
Price
Date
Quality
Quantity
Price
Date
Quality
Quantity
Or
Or
Sales Contract
Planning
scheme
Allocation

15. Allocation: matching deliveries on characteristics
Selection of delivery lines for an allocationCompare characteristics of the deliver lines
Multiple lots / deliveries in
one allocations possible
Non-matching quality will
be highlighted

16. Buy / Sell versus Commodity Trading and position of CTRM4JDE in spectrum
Strategy Gain profit with fixed margin between Buy and Sell price.
Buy to fulfill demand, production / manufacturing
Take position / define strategy to profit from market price
fluctuation / arbitrage / long-short positions.
Traders usually have an “open position” with exposure and risks
towards market, market-prices
Item Specific product defined for production / customer
purpose
Globally defined and traded item
Market No market Global market with global prices.
Physical versus financial Buying and selling physical products to store or to deliver Buying and selling physical and financial products (derivatives).
Both for hedging and speculative purposes
Contract versus delivery Contract and delivery are match one to one. Contract
refers to specific delivery of specific goods
Loose coupling between contract and delivery. Quantity; quality;
price and timing can be agreed later based on contract
parameters
Buy/Sell Commodity Trading
CTRM
CTRM
CTRM
CTRM
CTRM

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