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Scrap dealers and recyclers are witness to the tremendous growth in the scrap market linked to the high demand of recycled metal. However, structural changes in demand and supply, volatility in prices, and increasing competition are challenges that the industry needs to address in order to capitalize on the growing opportunity. Eka provides you a comprehensive platform to streamline the complete supply chain and delivery process, manage price risk with the help of derivative instruments, and reduce time-to-market while improving decision support to help you make the most from market opportunities.
All your contracts get organized and your positions tracked per customer, supplier, product or location. Operational efficiency improves by sharing of data across departments, thereby eliminating duplication of effort in data entry. Eka provides very strong functionality for managing logistics of incoming and outgoing cargo. You can book containers or nominate vessels, issue instructions to suppliers, shipping lines, customs agents and other service providers, and track the status of the cargo in real-time – unshipped, in transit, or arrived at warehouse. You can manage storage of cargo across locations, and track weights and costs at different steps of the contract execution cycle. Finally, Eka can generate invoices and help you track receivables in real time.
Price risk is managed through futures and option trades, which can be linked to individual physical trades or matched against an overall position. Keeping in mind the volatility of the metals market, the solution has been configured to handle COMEX & LME futures and options, average contracts, swaps and structured trades. Finally, Eka calculates your mark to market position and PnL on both physical and derivatives positions.
All purchase and sales contract information is easily integrated with your other packages (ERP, accounting, master databases, etc), made possible by Eka’s integration layer. This ensures that your valuable data is shared across the company, eliminating any duplication of effort and supporting decision making at all levels.
Physical Contract Management
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Manage physical/financial contracts, swap contracts and concentrate contracts with various pricing methods – average priced, formula/index based, flat, and other more complex pricing, with support for TC/RC, payable metal, penalties & assay rules.
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Takes into account industry specific requirements such as tracking duty status (paid/unpaid) and the form of the metal (T-bars, ingots, cathodes, etc.).
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Comprehensive contract allocation management.
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Complete logistics details including inco-terms and title-transfer rules, optionality on load/disport locations
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Comprehensive management of all ancillary costs, fees and accruals, and impact upon true risk and P&L calculations
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Inco-terms are not just a label on the contract, the system recognizes and prompts when title transfer occurs based upon inco-terms and operational events and impacts true exposure, position and valuation metrics accordingly to represent reality.
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What-if trades and pre-deal analysis
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Integrated contract document creation tool
Tolling
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Manage tolling processes, set recovery ratios.
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Track Processed and Un-processed Stock
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Calculate COG of tolled material taking into account both tolling cost and material cost for accurate Inventory values.
Hedging
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Comprehensive management of OTC and exchange derivatives including futures, forwards, options, swaps and FX hedges.
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Hedge Accounting
Position Management
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Real-time position visibility across physicals and derivatives allows you to identify exposures and take appropriate actions, while currency risk is managed through forwards.
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Capture, measure and report transactions in real time giving a complete transparent view of physical & financial positions and exposures.
Physical M2M
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Calculate accurate mark-to-market valuation of open contracts and inventory by taking into consideration all cost & accruals, duty paid/unpaid and location premiums & discounts (e.g. Metal Bulletin and Midwest Transaction Premiums), treatment and refining charges.
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View exposures, perform M2M and P&L calculations, settlements, and of course allocate these to physical contracts.
Logistics
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Streamline distribution & movement of cargo from mine to finished product.
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Weights and costs updates happen at every contract execution step, and a comprehensive documentation module simplifies operations.
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Comprehensive management of logistics operations and processes including all associated fees, including impact upon title transfer and exposure.
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Multiple units of measurement, including wet/dry weight conversions
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Ability to track quantities and costs across entire logistics chain
Finance
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Eka’s finance module allows creation of invoices, updating payables and receivables, accrual management, monitoring cash flows and posting entries into your accounting package.
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The day & month end routine uses advanced algorithms to calculate and store the positions for the period, including net open physical, inventory, unrealized and realized P&L of physicals & derivatives and LME difference accounts, as well as finalization of averages.
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
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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