Eka’s Position App Helps Large Biofuels Company Gain Real-time Consolidated View of Position
Biofuels are manufactured largely from agricultural commodities, but they are consumed in the traditional fuel supply chain. Therefore, 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 to have real-time, accurate visibility into data.
A large biofuels company needed a real-time consolidated view of its position to enable better business decisions. The data required to create position reports resides in disparate systems – including commodity trading and risk management systems, inventory management platforms, and spreadsheets – making data consolidation challenging.
The existing reporting process took four days of manual effort. The team needed to manually extract and process data from multiple sources, including JD Edwards for inventory, Eka for physicals, direct brokers for derivatives, and spreadsheets and daily production reports from individual plants. It needed to apply rules and adjustments to handle exceptions, process issues, inaccuracy, etc. The company was losing valuable time creating reports.
Hedging decisions were often delayed because the market would move by the time the company had enough visibility into its true exposure. As a result, opportunities were missed, and the company faced higher risks due to delays in identifying market risk.
Losing four days creating reports hindered the company’s ability to analyze data and make strategic decisions in a timely manner.
The company implemented Eka’s Position app to empower it to identify market risk in near real time. Eka’s solution consolidates the company’s position by aggregating and analyzing data from the company’s CTRM system, futures broker system, inventory management solution, and multiple spreadsheets. In addition, it provides heating spreads, positions, compliance reports, and executive dashboards.
The solution was deployed in just six weeks, providing benefits in under two months. Eka’s Position app eliminates manual reconciliations, enabling the company to view exposure at the click of a button instead of waiting days for manual reports. It provides one, accurate visual representation of position in real time and delivers a detailed flexible position view by region, profit center, and strategy.
With the four-day reporting cycle reduced to under one hour, executives now have access to the right data at the right time. This has helped the company make informed decisions.
It has also eliminated any chance of human error while aggregating, blending, and analyzing inputs from all data sources.