Global Force in Advanced Biofuels Embraces Advanced Analytics
January 24, 2018
Renewable Energy Group (REG) is used to being a global leader. Founded as a single biodiesel facility in 1996, the company has sold over two billion gallons of biomass-based diesel fuel and built a strong network of state-of-the-art biorefinery production facilities. Today REG is a global force in advanced biofuels and renewable chemicals.
Why advanced analytics?
Biofuels have come of age as a significant and an increasingly cohesive part of the world’s energy mix. Manufactured largely from agricultural commodities but consumed in the traditional fuel supply chain, biofuel prices are driven by the intricate balance between crude oil and commodities fundamentals. This mix lends itself to a complex trading and hedging proposition, which makes it important for REG to have timely and accurate visibility of data.
Why Eka’s Position app?
REG has data in multiple systems, including physicals in Eka CTRM, inventory data in JD Edwards, and derivative and inventory/control adjustments in spreadsheets. This data needs to come together to produce position reports. Creating these reports manually takes time, and REG was spending crucial time putting these reports together instead of using that time to study the market and identify risks. It was getting hard for them to make strategic decisions on time because the market would move by the time REG could assess true exposure. They needed a solution that could process large volumes of data from disparate sources and help them gain immediate insights.
What results have they achieved with Eka’s Position app?
Eka helped REG automate a four-day, manual reconciliation process into a 30 second task. The app enables them to view exposure at the click of a button instead of waiting a full business week for the manual report to be put together. It eliminated any chance of human error while aggregating, blending, and analyzing inputs from all their data sources and provides them with one, true picture.
In addition to time savings, the solution provides accurate, visual representations of REG’s position in real-time, thus enabling them to react quickly and alleviate risk in case of an anomaly. The app also provides multiple executive dashboards, with the flexibility to assess position by region, strategy, and profit center.