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The market for sugar is highly volatile, influenced to a large extent by harvest periods, adverse or unusual weather conditions and crop infestation. The recent trend of using sugar to produce ethanol has further accentuated fluctuations in demand for sugar, which is also affected by increasing price of crude oil. In other words, a trend which is likely to continue into the future, gathering momentum and speed, is the volatility of trading in sugar as demand versus supply becomes even more unpredictable.
While the landscape shifts and alters, you need to run your business in a profitable manner, for which you need the advantage of knowledge – knowledge which knows, powers and controls the operational and business decision making processes. Managing large volumes of physical trading of sugar in its different forms like raw and white, refined and super- refined across multiple origins, is a difficult, complicated process. You need knowledge to manage and consolidate your entire business, covering trading, operations and deliveries across multiple locations, production, hedging, risk management, position, mark to market and P&L.
Eka’s CTRM solution for sugar has been designed keeping you in mind. Our domain knowledge gives you the advantage of managing your entire contracts get organized and your positions, P&L and exposures tracked per customer, supplier, product, location or delivery period. Sugar specific requirements such as handling of polarization and other premiums and discounts, recording of quality analysis reports, calculation of final prices and invoices based on that, mark to market calculations, handling of white sugar premiums, etc, are easily managed in the system. Operational efficiency improves by sharing of data across departments, thereby eliminating duplication of effort in data entry. Cargo statuses and costs are tracked in real time, with the COGS values updated based on either accrued or actual costs. Flexible position reporting is combined with highly accurate P&L calculations that ensure completeness and accuracy of information. Documentation is simplified through a comprehensive repertoire, right from nominating vessels or booking containers, issuing instructions, advices and release orders. Invoices are generated and payments tracked in real time.
Eka thus gives you the flexibility to control your position by desk. It can be configured in such a way that senior managers can get a global perspective of the entire business across commodities and line access to information relevant for their operations. In other words, we will give you the power of knowledge which is an unfailing way to always remain in control.
To learn about how Eka can add value to your operations, click here or write to us at demo@ekaplus.com.
Physical Contract Management
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Manage long-term agreements, spot purchases and sales with various pricing methods – fixed, differential or quality based premiums and discounts.
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Incorporates industry specific requirements such as handling of multiple grades across multiple origins, product ratios for cocoa products, polarization premiums/discounts in sugar, etc.
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Comprehensive contract allocation management.
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Forward & Backward integration with supply chain partners: Grower portal for Grains origination business
Futures and Options
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Helps you identify and manage price risk.
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Derivative trades of types EFP, speculative, arbitrage & switches, and track strategies.
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Hedges can be allocated to physicals, and partial or final price fixation confirmations generated automatically.
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You can close-out trades, perform reconciliations with broker statements, and track commissions.
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Quick view of Net open positions, Variation Margins, Expenses on Futures & Options
Position Management
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One view of Real-time position visibility across physicals, derivatives and combined physicals derivatives allows you to identify exposures and take appropriate actions, while currency risk is managed through forwards that are available on the mobile phones and iPads as well.
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Capture, measure and report transactions in real time giving a complete transparent view of physical & financial positions and exposures.
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Track Position changes on a daily, weekly & Monthly basis by commodity & Profit center
Physical M2M
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Gain accurate mark-to-market valuation of open contracts and inventory, by taking into consideration all estimates & accruals, contract terms as well as location /quality premiums & discounts.
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View exposures, perform M2M and P&L calculations, settlements, and of course allocate these to physical contracts. These allocations can be one-to-one, one-to-many or many-to-one.
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Auto upload of Market quotes for Physicals and Derivatives for quick M2M P&L.
Logistics
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Completely streamlined multimodal movement of cargo from origin to destination by Road, Rail & Ocean.
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Stock updates with inward and outward weights closely monitored to trigger weight claims. Weights and costs updates are made at each contract execution step, and a comprehensive documentation module simplifies operations.
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Pool & Outturn Management for Grains.
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Intelligent workflow process that eliminates data entry errors and simplifies back office operations.
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Captures cost accruals at every logistical activity with comprehensive audit trail.
Finance
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Eka’s finance module allows creation of different types of commercial invoices, updating payables and receivables, tracking costs, monitoring cash flows and posting entries into your accounting package.
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One of the most powerful features of the application is the day & month-end procedures, which uses advanced algorithms to calculate and store the positions and P&L (unrealized and realized) on both physicals & derivatives.
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Excellent capability to integrate with accounting packages
Business Intelligence & Reporting
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Eka’s business intelligence tools help you understand how and why position and P&L are what they are, and how they have changed between any two periods, trade-by trade, and factor by factor. It enables the user to slice and dice the information.
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Generate multi-dimensional, cross departmental reports that gives users a 360-degree view of the organization’s positions, exposures and P&L
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Well structured, comprehensive suite of reports covering physical trading, logistics, stock, derivatives, currency, finance, end of day, end of month, position, mark to market, P&L. Exportable to spreadsheet, Word, HTML etc
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Generate multi-dimensional, cross departmental reports that gives users a 360-degree view of the
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organization’s positions, exposures and P&L
To learn about how Eka can add value to your operations, click here or write to us at demo@ekaplus.com.
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