ENTRADE® Unite

WHITE PAPER: INTRODUCING ENUIT’S SOLUTION

TRANSPARENCY FOR THE ROAD AHEAD

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Introduction to ENTRADE® Unite, ENUIT®’s Commodity Management Solution for global Energy and commodities trading companies.

What is a Commodity Management solution? Margins and volatility are what drive the trader’s ENTRADE® Unite has the potential to deliver significant . Over the last few decades companies that benefits in the form of enhanced visibility, analysis, commodities and energy have adopted niche insights, and decision making for any market software solutions to help mitigate some of these participant. associated risks and to automate a lot of the manual ComTech Advisory, the leading CTRM analyst firm, processes between front and middle office. These defines Commodity Management as the superset of solutions have typically been known as CTRM / ETRM software solutions that encompasses CTRM and ERP solutions. for Commodities where: In General, a large portion of a company’s back office functionality and core processes have been 1) ERP for Commodities naturally focuses on physical supported by multiple solutions including an commodities and emphasizes / package and/or Enterprise / origination, movement, storage, and planning (ERP) system which would typically track handling of bulk and packaged commodities. This will business — cash, raw materials, production usually include management, procurement, capacity—and the status of business commitments: production, logistics, management, orders, purchase orders, and payroll. assays/chemical analysis, pricing and fixation, hedging, Many companies lack an intelligent integration settlements, and accounting. The primary users of this between their CTRM system (in some cases based on type of software are producers, industrial consumers, spreadsheets) and its enterprise resource planning and processers. (ERP) system. This has long been an issue, leading to challenges in inventory management, risk analysis, and 2) CTRM will have a trade-centric design with a focus trade book to financial reconciliation. on capturing and tracking both physical and financial In 2019 ENUIT® was selected as the CTRM vendor of , with configurable book and reporting choice for a multi-national, cross commodities trading structures, calculation and valuation, PnL, and company. During the planning and implementation various aspects of risk, including market and credit risk. phase, the client commissioned ENUIT® to build into The primary users of CTRM software are traders and the core ENTRADE® system the functionality to support merchants. their entire business from Front to Back including all The ENTRADE® Unite Difference aspects related to their Enterprise Resource Planning. Let us look at a typical CTRM – ERP integration, This led to the creation of ENTRADE® Unite, one of the described in the figure below. This sort of integration few solutions to incorporate all the aspects of a would cost several hundreds of thousands of dollars, Commodity Trading system and all perhaps millions of dollars. the aspects of an Enterprise Resource Planning solution directly in its core, in a single platform without To simplify the complexity of the cumbersome modules to enable integration and described in the figure below, ENUIT® has integrated mapping from one system to another. both CTRM and ERP functions into ENTRADE®’s core architecture without any need for extensive

integrations or mappings.

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Typical CTRM – ERP System Integration

What are the main benefits to users of ENTRADE® Unite?

ENTRADE® CTRM, although relatively new in Transactions can be immediately valued, the Risk Management space has already been settled, scheduled, invoiced, confirmed, taxed, widely accepted as a leading solution in this hedged and analyzed. space, specifically because ENTRADE® is one of For the Middle Office, ENTRADE® makes it the few systems that has the proven ability to possible to track everything from inventory support every commodity, every feature, and volumes, aggregation of costs, at risk, every user in one place on one platform. ancillary costs, the quality of , and then There’s no Third Party or Legacy System to tie that data to respective counterparties, integrate. , and portfolios. For the Front office, Deal and trade types can And for the Back Office, ENTRADE® generates be quickly configured to handle complicated invoices and remittance statements including commodity trading transactions whilst all associated fees and costs. It stores general automatically decomposing risk according to ledger codes and can generate and post each deal type’s risk profile. Each transaction journal entries directly to your General Ledger type is automatically integrated into every part system. of ENTRADE® – no coding required.

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Graphic 1 below shows the functionality that ENTRADE® as a CTRM platform offers

Graphic 1

The ENTRADE® Unite update has all the functions you need to run your commodity trading business:

• Capturing and recording deals • Movement documents • Scheduling physical commodity movements • Deal confirmation letters and Contracts • Tracking primary and secondary costs • Payables and receivables • Monitoring inventory levels and costs • exposure • Actualizing deal volumes • Mark-to-Market calculations • Valuating deals • Option pricing model ‘Greeks’ • Calculating settlement amounts • Value at Risk • Generating invoices Complete end-to-end visibility of the entire value chain: • Monitoring business and market risks • Processing management • Transparency of and their associated costs, market risks and • Providing useful reports and a data opportunities created by an ’s warehouse for all aspects of the business network of assets (e.g., refineries, pipeline Unparalleled Reporting capabilities: capacity, terminals, storage) • Volumetric positions • The ability to drill into data from enterprise • PNL attribution commodity transactions, enabling high- • Inventories quality in-depth analysis and insights • Storage, in-transit, exchanges, processing • A unified data source uniting data • Estimated and actual volumes and costs traditionally found in CTRM systems with data commonly found in ERP solutions.

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Graphic 2 below shows the functionality that the ENTRADE® Unite solution offers

“ENTRADE® Unite creates an integrated solution that can support today’s supply chain needs of trading organization, giving companies the opportunity to integrate trading and risk data with supply chain functions”.

ENTRADE® Unite is integrated internally

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ENTRADE® Unite is modern technology

ENTRADE® Unite is a flexible, robust solution with your business as markets and technology built as a single platform with state-of-the-art changes. With a simplified, unified technology. ENTRADE® even incorporates the , can focus on value- popular Python language. ENTRADE® is a added activities instead of focusing on manual, scalable enterprise platform that will grow error-prone, time-consuming processes.

Reach out to ENUIT® to find out more

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