Strategic Commodity Risk Management

Register here

Program

08.30 Registration and breakfast buffet

09.00 Chairman´s opening remarks

By CEO Søren Vammen, Kairos Commodities

09.05 Retailer Perspective - Cost modelling and sustainable long-term partnerships enabling Enterprise Risk Management

Over the last decade, prices of commodities have doubled and dramatically increasing the price of food. This has been one of the factors making life tougher for suppliers, retailers and customers. Commodities make up 50-60% of the cost of the products for retailers.

Our need to understand and manage food commodities for our customers is becoming a priority for our buyers and this will intensify as the global dynamics continue to change. The elevated levels of volatility we have seen in recent years are set to continue. The key factors driving this are demand & supply as well as financial speculation. This creates an environment with a high degree of risk.

Because of the increased volatility, more tension has been introduced into the dealings between retailers and suppliers. Commodity management has been done entirely by the supply base, which has meant for retailers insufficient visibility and understanding of costs. This needs to change to face into a changing commodity world and more competitive retail environment.

  • Creating cost transparency in the upstream supply chain
  • Working collaboratively with suppliers to manage commodity risk within the framework of longer term supply arrangements
  • In complex, multinational organisations such as Tesco there is also a greater requirement to have consistent framework and oversight across all market risks (e.g. FX, commodities, interest rates). Enterprise Risk Management is an umbrella solution that oversees all elements of risk.

v/ Head of Risk - Treasury Alex Ashby, and Head of Commodity Risk Management Albert Ciezkowski, Tesco

Biography - Alex Ashby

Alex joined Tesco in 2014. He heads up all Financial Risks globally for the Group Treasury covering Trading strategy, Governance and Analytics. He is also currently leading the Treasury transformation project as part of Tesco’s finance transformation initiative. Before joining Tesco he worked for Gazprom across Middle and Front Office specialising in Financial Risk and established a group wide cash flow at risk (CFaR) framework. Alex is a chartered accountant (ACCA), member of the Association of Corporate Treasurers (ACT) and has a Maths degree from Bristol University.

Biography - Albert Ciezkowski

Albert joined Tesco in 2013. He heads up Commodity Risk Management at Tesco. He is responsible for development of hedging strategies for grains, oilseeds, softs, dairy and metal products. He created Tesco’s commodities risk management framework and reporting infrastructure. Before joining Tesco he worked for Diageo specialising in commodity risk management and raw material sourcing. Strong experience in strategic sourcing, commodity price risk management, market research, change management, systems development and project management. He is also a CIMA qualified Management Accountant and holds two masters degrees, in International Relations and Finance & Banking.

10.05 Introducing Strategic Procurement and Risk Management to your business

Implementing Risk management is a change management task, and in most cases a real transformation challenge. Richard Stables has conducted the journey in 3 different companies, all within the food industry. A number of factors plays an important role in terms of HOW to implement risk management. In his presentation Richard Stables will explore the main levers of an successful transformation

  • Alignment of Strategy
  • People
  • Process
  • Tools
  • Making it normal

v/ Chief Operating Officer Richard Stables, Aunt Bessies

Biography Richard Stables

Richard joined Aunt Bessie’s in January 2013 as Procurement Director and was promoted to Chief Operating Officer in September 2014

Richard has 18 years experience within the food industry including United Biscuits, HJ Heinz and Findus where he held various positions across international purchasing teams.  He is a member of CIPS and passionately believes in the significant contribution that a successful procurement, supply chain and manufacturing team can make to the performance of businesses.

Away from the office Richard enjoys sport including football, running and golf. He also likes to travel frequently with his wife Silvia, and children Lilli, George and Luca.

10.55 Break and networking

11.25 Risk Management Concept at HÜPPE

v/ Group Director Purchasing Paolo Causo, HÜPPE (DE)

12.15 Lunch

13.15 The usage of 'stop-loss' mechanisms in downtrending markets

Miba has a significant exposure in commodity markets, either direct or indirect as cost drivers in semi finish or finished parts. Miba has the ambition to act dynamic according to the markets developments and has implemented together with Schneider Electric a flexible and agile hedging concept for electrical energy in order to fulfill this ambition. A key component in the concept is the usage of “stop-loss” mechanisms in order to get full advantage of down trending markets without taking too much risk in regards to possible price trend changes in upwards direction.

  • Miba at a glance
  • Concept of commodity risk management
  • Hedging policy
  • The usage of stop loss as a hedging tactic in down trending markets
  • Next step in strategic commodity risk management at Miba

v/ Vice President Purchasing Volker Reulein Miba AG and International Solutions Director Torsten Hass from Schneider Electric

About Miba

Miba is one of the leading strategic partners of the international engine and automotive industry. All well-known OEM and Tier 1 suppliers in the automobile industry are Miba customers.

Our product portfolio includes sintered components, engine bearings, friction materials, power electronics components and coatings. Miba products make motor vehicles, trains, ships, aircraft and power plants more efficient, more reliable and more environmentally friendly.

Miba was founded in 1927 as a repair and production shop for engine components and has since grown into a leading international group employing more than 5,300 people and producing at more than 22 sites worldwide.

14.05 Context dependent commodity risk strategies

Gruppo Damm (Estrella Brand) is facing multiple challenges in coping with commodity risk exposures. As a brewer of both own premium brands and private label products the context and the decision room differs significantly. As a response to this complex environment Gruppo Damm has developed differentiated adequate strategies for different costumer groups.

  • Gruppo Damm at a glance
  • Commodity risk management challenges
  • Differentiated strategies - examples at commodity level

v/ Director Compras Eduard Tenas Salarich, Damm Group (ES)

14.55 Break and networking

15.15 Practical hedging – what are the options and pitfalls?

Many companies lack a coherent framework for handling commodity risk. Strategies and tactics are changed as the wind changes. This presentation will give the overview and the insights through conceptual frameworks and practical examples, that will enable you to build up a robust Hedging Strategy, as well on company level as on commodity level.

  • How much is at risk in a typical company?
  • The strategic commodity risk management framework – The fence around the playground.
  • Practical examples of hedging strategies.
  • Different risk objectives leads to different risk strategies.
  • Different hedging profiles – pros and cons.
  • The good, the bad and the ugly – More practical examples of hedging strategies.

v/ Chief Analyst Tom Bundgaard, Kairos Commodities and CEO Søren Vammen, Kairos Commodities

Biography Tom Bundgaard

Tom Bundgaard is the Chief Analyst at Kairos Commodities, in charge of commodity price analysis and forecasting. His practical background is 13 years as Purchasing Manager, buying all kinds of commodities. His theoretical background is a progression of specialization: Academy Economist, a MSTA degree from Society of Technical Analysts in London and finally a Master of Financial Technical Analysis from the US.

Biography Søren Vammen

Søren Vammen is the CEO of Kairos Commodities and has a background within leadership- and organizational development based on a Master in Organizational Psychology from Copenhagen Business School. Søren has more than two decades of experience in assisting all types of companies with strategic development of their supply management capabilities.

16.15 Chairman´s closing remarks

16.20 End of conference, refreshments and networking

On wednesday June 1st we have the masterclass

Commodity Markets Analysis - read more about that here

Register here

Tid og sted

Thursday June 2nd 2016 from 09.00 - 17.00

First Hotel Copenhagen
Molestien 11
DK-2450 Copenhagn SV
Tel. 7012 7373

Priser

DKK 3.975 for members of DILF / subscribers to Kairos
DKK 5.475 for non-members of DILF / non-subscribers of Kairos

Tilmelding

Benyt tilmeldingsformularen på dilf.dk/tilmelding.

Faktura og bekræftelse fremsendes efter modtagelse af tilmelding.

Afbestillingsbetingelser

Ved afmelding senest 30 dage inden arrangementets afholdelse, kan deltagerafgiften tilbagebetales – fratrukket 10% i administrationsgebyr. Ved afmelding senest 14 dage inden arrangementets afholdelse skal 50% af deltagerafgiften betales. Ved afmelding senere end 14 dage inden arrangementets afholdes, betales hele deltagerafgiften. Såfremt du er forhindret i at deltage, er du naturligvis velkommen til at sende en kollega i stedet. DILF skal så vidt muligt underrettes herom. Fakturaen korrigeres i henhold til den nye deltagers medlemsstatus.

DILF forbeholder sig ret til at foretage ændringer i programmet. DILF forbeholder sig ligeledes ret til at afvise direkte konkurrenter til talere, virksomhedsbesøg og sponsorer på arrangementet.


                                                [Banner]
                                            
                                                [Banner]
                                            
                                                [Banner]