With tens of billions of dollars in annual global physical commodity inventories – sugar, cocoa, nuts, energy, and more – managed across 6 business units and as many accounting systems, a single view of physical commodity exposure was needed to enable optimal financial hedging and risk management on a global basis.

Essentia Provided

Essentia and the client designed new business process workflows as necessary to achieve the decision-support required to enable global price risk mitigation. This includes:

• Augmenting the out-of-box CTRM features with additional tables, screens, and logic enhancements to address a number of unique client business requirements.
• Interfaced the CTRM with numerous accounting systems, pulling in fixed price contract purchases and inventories enabling total commodity exposure calculations.
• Simulation of the best options for hedging.
• Allocation of hedges back to the relevant business units.

Client Benefits

A foundation of global derivative trading & risk management capabilities were deployed, enabling business transformation and physical commodity price risk mitigation.

Client Profile
At ~$45BB in annual revenues, this client is one of the world’s leading manufacturers of chocolates, chewing gum, and other confections.

Industry
Agricultural commodities

Commodities
Energy
Sugar
Cocoa
Nuts
and more

Technologies Deployed
Allegro
C#
Microsoft SQL Server
Microsoft Azure Cloud Services

Essentia Services
CTRM Deployment
Cloud Managed Services