A combination of persistently low margins and high volatility can spell bad news for refining operations, causing intraday swings in oil prices exceeding their margins. According to an article recently published in Global Technology Forum, this situation is driving greater integration between refinery operations and trading activities within oil companies. It’s no longer good enough to be buying or selling to meet the needs of the refinery – supply traders and marketing personnel are being asked to use their market knowledge to make smarter trading decisions.

According to Viren Doshi, senior vice president, Booz & Co., a more trading-oriented approach has been most prevalent in northwest Europe, the Mediterranean, and the US Gulf Coast. Companies in these regions have recently had to be more flexible to survive low margins and leverage high price volatility in their markets. Independent refineries in particular have been bullish on this approach because of their less complex operations.

Software solutions that can minimize costs and maximize refinery margins by optimizing the entire supply and trading chain have been key to making trading integration easier for refiners. These solutions have the ability to process refinery plans and forecast demand and production information upon which the supply and marketing groups can take action. They also enable plan changes to be immediately visible to the trading group for improved efficiency and productivity. To learn more, read the full article.

Mining companies are no strangers to advanced technology – geological models, dispatch, and plant control systems offer sophisticated databases and solutions for asset optimization. But there’s one exception: supply chain management for tracking assets from mine to customer.

Mining companies often rely on a patchwork of generic spreadsheets to manage the tonnage, quality, and value of their coal or mineral supply chains. This is a very dangerous practice – spreadsheets are not sophisticated enough for handling complex operational processes such as planning, material tracking, and grade control – however, they are often relied upon to do just that.

In addition, studies show that as many as 94% of spreadsheets contain errors, which often go undetected. These errors can spread throughout key corporate processes that control hundreds of millions of dollars of inventory, putting the entire firm at significant operational risk.

To learn more, read “The Hidden Threat,” an article recently published in Mining Magazine. Authored by Steve Maxwell, Triple Point’s resident mining supply chain expert, the piece details the dangers of relying on spreadsheets for mining supply chain management, making the case for advanced supply chain management systems. Read it now.

According to McKinsey, Asia’s global middle class is likely to grow by three billion people over the next 20 years, and China and India are doubling per capita incomes by approximately 10 times the rate and 200 times the scale achieved by England’s Industrial Revolution in the 1800s.

This massive middle class expansion has fueled demand for commodities such as oil, coal, and wheat. More and more Commodity Management companies dealing in the Asia Pacific (APAC) region are realizing that in order to ensure price volatility doesn’t diminish profitability, they need advanced technology solutions such as Triple Point’s Commodity XL™ to optimize supply chains, improve decision-making, and minimize risk.
 
In 2011 Triple Point experienced record growth in APAC, with year-over-year revenue for the region increasing 75%. APAC customers include China National Offshore Oil Corporation (CNOOC) Limited, China’s largest producer of offshore crude oil and natural gas, as well as Bayin Resources, Dhanlaxmi Bank, Marubeni, Merit Chartering, and State Bank of India. Triple Point has also significantly expanded its staff in Asia Pacific, growing from 250 to over 400 employees, in order to ensure full support for the company’s growing customer base. In addition, Triple Point extended its Asia Pacific footprint with the acquisition of QMASTOR, the premier provider of mining software solutions, headquartered in Newcastle, Australia. 

Read more about Triple Point Commodity Management solutions.

News-grabbing headlines highlighting commodity price increases due to weather-related and other supply issues have completely shifted the dynamics of Commodity Management and broader procurement, sourcing and supply chain management activities.

According to advisory group Spend Matters, organizations are observing radical commodity price fluctuations of up to 40% which are having a massive impact on their P&Ls. However, despite this volatility and its impact, precious investments in technology solutions and skilled resources often go towards other areas of the business rather than being allocated towards efforts to control, mitigate and manage commodity risk. Companies that allocate little or nothing towards Commodity Management head down a very dangerous path towards declining returns and higher risk profiles.

A new white paper from Spend Matters, “Beyond Sourcing and Supply Chain: Commodity Management Solution Fundamentals,” explains that “now is the time for organizations to make the right set of investments in Commodity Management.” It outlines the business case for Commodity Management, including how to build a quantifiable argument to invest in the right team, processes and solutions to take action in the current environment. Read it now and learn how to prepare your organization to manage the dips, twists and turns of today’s roller coaster economy.

If your answer to the above question is anything less than ‘very,’ your company’s future may be at risk.

In the turbulent seas of the shipping industry, understanding the true market value of your fleet is the difference between sinking and swimming. Performing frequent mark-to-market (MTM) valuations is an integral part of doing business. However, due to the volatile nature of the industry, the complexity of calculating freight rates, and flaws inherent in popular valuation methods and tools, companies often end up with inaccurate numbers. This provides an erroneous picture of financial standing that can result in lost profits, faulty decision-making, and ultimately the demise of an entire business.

To understand the challenges associated with calculating accurate MTM valuations and how to address them, I encourage you to read a new article in The Baltic by Javier Navarro, Triple Point’s Freight Risk Solutions Manager. It offers a detailed look into this subject that is intended to help companies gain a competitive edge and stay afloat in the rough waters of the cutthroat shipping industry. Read it now

The 2,000 page Dodd-Frank Act is the US government’s response to the financial crisis. While it was signed into law well over a year ago, the finer points are still being negotiated, clarified by lawyers, and challenged by Wall Street players.

For energy and commodity firms operating in Europe, this is a cautionary tale – the European Union (EU) is introducing an alphabet soup of directives and legislation affecting the financial and commodity markets including the Regulation of Energy Market Integrity and Transparency (REMIT), the Market Abuse Directive (MAD), the second Market in Financial Instruments Directive (MiFID II), the European Market Infrastructure Regulation (EMIR), and the Capital Requirements Directive (CRD).

The EU’s objective is to have all legislation in force by the end of 2013. The exact provisions aren’t fully baked, but it’s clear that all companies trading over-the-counter derivatives will be impacted across the whole value chain from front office sales through to back office reporting and all points in between.

Not sure how to prepare your company for the impending regulatory avalanche? Mike Zadoroznyj, Triple Point’s Vice President, Treasury and Regulatory Compliance, has written an article for FX-MM magazine about what you need to do in order to ensure that your systems are compliant. Read it now

Recognizing that it needed a state-of-the-art software solution to effectively manage derivative valuation and hedge reporting for its clients, business consulting services firm Sirius Solutions chose Triple Point’s Commodity XL for Hedge Accounting™. Sirius is the latest in a long line of companies who are realizing that they need sophisticated technology solutions in order to manage the numerous, complex regulations that make hedge accounting a herculean task. The firm will be using Triple Point’s solution to automate the entire hedge accounting process and assist clients with hedge decision making, curve validation, mark to market valuation, financial reporting, and compliance.

In a recent press release Kristi Chickering, CEO of Sirius Solutions, commented: “An upgrade to our proprietary valuation solution was essential due to the growing and complex needs of our clients. Commodity XL will enable us to enhance our existing capabilities and provide more robust documentation while delivering the same deep hedge reporting, derivative advisory solutions, and superior service that our customers have come to depend upon.” 

Learn more

Triple Point’s QMASTOR PortVu bulk terminal management system has won the prestigious International Bulk Journal (IBJ) IT Solutions Award and was recognized for delivering a significant, measurable return-on-investment. 

QMASTOR PortVu was honored with this award because it is the only complete, integrated bulk terminal management system that manages all the complexities of port operations. It is a proven, multi-lingual solution that is being used across the world by leading resource companies and terminals. PortVu optimizes decision-making and delivers substantial cost savings by integrating terminal operations with suppliers, customers, transport providers, agents, laboratories, and other supply chain partners through one common platform.

The award follows on the heels of Triple Point’s acquisition of QMASTOR, the premier provider of mining software solutions to manage the tonnage, quality, and value of coal and mineral supply chains from "pit" to the point of export, import, or consumption. QMASTOR’s advanced solutions manage and optimize all aspects of mining supply chains including mine planning and scheduling, material tracking, logistical movements, 3D stockpile modeling, grade control, blend management for coal, and other minerals such as nickel and iron ore. QMASTOR also offers solutions for managing port operations and metallurgical accounting.

QMASTOR solutions are a perfect addition to the Triple Point portfolio because they supply all the functionality to optimize an end-to-end coal and mineral supply chain, while at the same time being completely complementary to the rest of the Triple Point product set. The companies’ complementary customer bases, target markets, and product sets create substantial opportunities for continued and accelerated growth.