Entries for May 2013

A sustained boom in natural gas recovery has shifted conversations in the United States from speculation about shortages and price hikes to decisions on how much should be exported. Studies continue to locate proven reserves and natural gas companies are vying for permission to build facilities to create liquefied natural gas (LNG) and export it to non-U.S. customers. Of the 20 federal permit applications that have been submitted to the Energy Department, only two (Cheniere Energy Inc., and Freeport LNG Expansion L.P.) have received approval. However, recent actions and statements made by the Obama administration suggest that more will be approved soon.

Companies given the go ahead will need to determine if the upfront billion dollar cost and time required to build a liquefaction/export facility is worthwhile. In the last few years alone, the U.S. has seen average prices of natural gas range from as little as $2.66 to nearly $8 per MMBtu. While Asia and Europe have seen double digit pricing during that time, it is difficult to predict what will happen as markets gain access to additional supply.

Regionalized natural gas markets are already volatile. Changes in weather, unexpected problems with transport/refining equipment, and political events/policies can all drastically affect supply and demand. The vast amount of LNG set to enter foreign markets will increase uncertainty, and make it harder to navigate risk. Market participants and energy companies must be able to mitigate the risks of trading on a global scale.

Triple Point Technology’s energy trading and risk management (ETRM) software, Commodity XLTM, offers the best path to success. End users can accurately and efficiently monitor physical commodity movements and price changes, and configure a customized dashboard to display trade information and risk positions across transactions and markets. Click here to read more about Commodity XL for Gas.

ETRM Software House of the YearTriple Point received the prestigious “ETRM Software House of the Year” from Energy Risk magazine this week at an awards dinner held this past week at the Energy Risk USA conference in Houston. Triple Point was selected as the winner because of its revenue, profit, and customer growth in 2012 along with its unique ability to deliver innovative, next generation commodity trading and risk management (CTRM) solutions including mobile applications.

In 2012 Triple Point grew its revenue by 30% and its profit by 40%, and added 28 new energy companies to its base of 400+ customers including Spanish power generator Iberdrola Generation, Korean-based oil refiner and marketer SK Energy, Brazil energy giant Petrobras, and China National Offshore Oil Corporation (CNOOC) Limited.

Energy Risk also named Triple Point “Software House of the Year – Asia” in 2012. In addition, Triple Point has been named a Leader by two top analyst firms – by IDC in its 2013 IDC Marketscape: Energy Trading and Risk Management (ETRM) Vendor Assessment, and for four straight years by Gartner in its Magic Quadrant for ETRM Platforms.

When accepting the award on behalf of Triple Point, Sr. Vice President and Chief Marketing Officer Michael Schwartz emphasized that what makes Triple Point successful is the people behind the software, who are committed to delivering unsurpassed value.

We recently returned from sponsoring Logichem Europe where over 250 supply chain planning professionals discussed top industry trends.  A topic of particular interest this year was supply chain segmentation. 

What is supply chain segmentation?  It’s a way to have your physical supply chain support multiple, virtual supply chains—each focusing on a different segment of products or markets with unique production costs, distribution costs, and customer requirements. 

For example, companies can use segmentation to have their low margin products follow the most cost-effective paths through the supply chain, isolate unpredictable customers into separately forecasted groups to improve overall accuracy, or give premium service only to their highly profitable customers. 

That’s good news for an industry facing extreme volatility and price pressures.

If you were to group your company’s products into different categories having similar expected customer service levels, lead times, and packaging varieties, you’d find that each group places different demands on your supply chain and represents different levels of profitability to your company.  So why not treat each group differently with product and service offerings tailored to each group’s unique needs? 

Supply chain segmentation allows you to do this. 

Mature segmentation strategies extend across several areas of your supply chain, involving differentiated customer replenishment programs, supplier replenishment programs, inventory policies, demand policies, allocation and order promising, and Sales & Operations Planning strategies.  With segmentation, you can introduce more stability in your production, leverage more economical distribution, and minimize the impact of volatility.

It’s easy to see why segmentation was a main point of focus at the Logichem conference.  At Triple Point, we understand the value of segmentation to our customers, which is why our Supply Chain Optimization solution supports such strategies.  Contact us to find out how you can implement a segmentation strategy for your company and begin reducing the impact of today’s volatility.

Over the past decade, Brazil has grown to be the largest economy in Latin America and a major player in global agricultural production. As the world’s largest exporter of sugar, it produces around 20% of the world’s supply annually. In addition, Brazil is a leading exporter of chicken, coffee and soy beans. A significant portion of the world’s economy is dependent on the continued success of agricultural exports, and industry leaders are recognizing the need for advanced commodity trading and risk management (CTRM) solutions that help maintain a competitive advantage by managing volatility and optimizing supply chain efficiency.

In an effort to support the growing need for advanced CTRM solutions in the Brazilian market, Triple Point recently hosted an agriculture-focused Commodity Management lunch in São Paulo. More than 30 regional industry executives from companies including Algar Agro, ADM, BRF Brazil Foods, and Noble Group gathered at the stunning Bar Des Arts for an afternoon of presentations, networking, and fine dining.

Triple Point executives teamed up with Guilherme Nastari of DATAGRO and Eduardo Barros of Accenture to give a complete perspective of current agriculture market trends and Commodity Management best practices.  Attendees learned how gaining a transparent, integrated view of physical and financial position in real-time enables them to maximize the impact of volatility on the bottom line. The event was very successful with positive feedback from all who attended.

Visit our Web site to learn how Triple Point solutions can help manage volatility and risk in your business.

Events

Procemin 10th International Mineral Processing Conference

October 15-18, 2013 | Chile

XXV Brazilian National Meeting of Mineral Treatment and Extractive Metallurgy (ENTMME)

October 20-24, 2013 | Brazil



Opinions expressed on this blog are those of its individual contributors, and do not necessarily reflect the views of Triple Point Technology, Inc.