Dairy Cooperative goes Live with Comprehensive Risk Solutions in Six Weeks on Eka’s Digital Commodity Management Platform
A world-class dairy cooperative made up of close to 1,500 farmers supplies cheese, dairy products, and ingredients to national and international markets. They have a flexible, diverse plant network that allows them to manufacture products and ingredients that are most in demand – and provide a strong, secure market for their member-owners’ milk.
The dairy cooperative was using FC Stone to manage trading and execution. They were managing risk – including mark-to-market, hedges, open positions, and P&L – using multiple spreadsheets. As market dynamics became more volatile, and their business grew, they needed a more structured approach to risk. They did not want to replace FC Stone, because that system was working for trading and execution. They needed a comprehensive, out-of-the-box commodity risk management solution that could be quickly and easily integrated into their existing system.
After a search, the dairy cooperative determined that Eka was the best partner to help them achieve their business objectives. During the selection process, Eka demonstrated the best combination of vendor stability, features and functions, reporting, training and support, technical requirements, administration, and value.
The cooperative implemented a comprehensive commodity risk system from Eka comprised of four of Eka’s apps: Position, Mark to Market, Procurement, and Risk and Monitoring.
- Fast implementation: Eka’s Digital Commodity Management Platform allowed the dairy cooperative to implement a comprehensive risk management system in just six weeks.
- Real-time, accurate insight: Eka’s apps aggregate and analyze data from multiple data sources – including Excel spreadsheets, Oracle ERP, and more – to provide company-wide transparency into risk. Users can view current hedging positions and determine where hedges are going.
- Custom reporting: The dairy company now combines multiple P&Ls from each department to create a roll-up P&L report. They track physical inventories and monitor and manage mark to market, net exposures, and fee settlements. Users create custom dashboards and visuals with drilldowns to answer their specific questions.
- Better decisions: Eka’s risk apps enable the dairy cooperative to make better hedging decisions, minimizing exposure as their business evolves.
Once on board, Eka lived up to customer expectations in the implementation process with effective planning and execution while demonstrating great technical ability, industry and product knowledge. The collaborative effort resulted in a successful implementation.