Jennifer JonesTriple Point’s EVP, global field operations, Greg Taylor, will speak at the Low Carbon Earth Summit (LCES-2011) taking place from October 19th – 26th at the Dalian World Exposition Center in China.

LCES-2011 is a world-class summit for information exchanges to promote low carbon economy and to cover comprehensive issues from public and private sectors. Taylor’s presentation, “Navigating the Complex World of Supply Chain Management,” will underscore how increased commodity price volatility and global product movements have made sourcing and supply chain management riskier, therefore dramatically increasing the need for sophisticated commodity management solutions.

Triple Point continues to maintain strong momentum in Asia Pacific, signing three new customers in China and Japan in the last 60 days, including Chinese National Offshore Oil Corporation (CNOOC), Bayin Resources, and Marubeni. Other notable Asia-Pacific customers include Su-Raj Diamonds, New Zealand Mint, Diamond India, Incitec Pivot, Prime East and Pacific Carriers, Olam International, and Petredec.

Triple Point has expanded to more than 300 employees across the region to support current and future planned growth.

The Asia Pacific region will play an increasingly important role in the commodities value chain. Triple Point’s strong growth in Asia Pacific underscores the unique depth and breadth of our commodity management solutions for companies looking to mitigate exposure to raw materials, energy, and commodity price volatility.

Posted in: @Triple Point   |   Tagged  APAC, China Energy Summit

Theory and Practice of Shipping Freight DerivativesIn January of 2008, Triple Point acquired Softmar, the leading provider of software to manage chartering and vessel operations, including freight risk management. As the freight derivatives market grows in sophistication — so must the range of strategies used. The acquisition enabled Triple Point to immediately provide our customers with solutions to optimize freight management and deepened our solution suite to offer market-based, commodity supply chain management across sourcing, transportation, inventory, operations, and product marketing. In today’s complex and ever-changing commodities markets, the most successful companies are those best prepared to identify risk and model its dynamics, measure and quantify the impact of risk across the enterprise and on financial results, and manage and mitigate risk with an integrated platform that enables better and more proactive decision-making.

Recognized as an industry leader in managing end-to-end shipping operations, we were honored to be invited by Professor Manolis G. Kavussanos and Dr. Ilias D. Visvikis  to participate in a book published by Incisive Media, titled: Theory and Practice of Shipping Freight Derivatives. Our Managing Director of Chartering and Vessel Operations, Michael Lolk Larsen, authored the chapter which examines electronic trading software requirements for the freight derivatives market.

Although roughly 90% of the world’s traded goods by volume are trans­ported by sea, industry surveys show that approximately 80% of companies are still attempting to man­age commercial vessel operations and freight risk through the use of spreadsheets! This creates layers of information that are not transparent to other business units, leading to greater operational risk. Triple Point’s chapter examines how sophisticated software, such as our flagship Chartering and VesselOps™  solution, enables ship owners, charterers, and operators to successfully man­age freight risk holistically by integrating physical and paper markets. It provides an overview of the freight de­rivatives market and examines the interconnected relationship be­tween chartering, vessel operations, and freight risk management. I highly recommend the book as essential reading for all members of the shipping and financial communities. You may purchase the book here.

About the Book

Freight rates and their fluctuation constitutes the most significant source of shipping risk. This increasing recognition has brought with it a significant amount of derivative products, which have begun to offer more effective, flexible and cheaper ways to manage risk. The book provides practical coverage of shipping freight rate derivatives, detailed by leading expert practitioners in the field, and offers best practices from different points of view.  I highly recommend the book as essential reading for all members of the shipping and financial communities. You may purchase the book here.

Other chapters in the book include:

  • The Structure of the Freight Derivatives Markets
  • Credit Risk and the Benefits of Clearing Services
  • The Ship Owner’s and Charterer’s View and Practice of Freight Derivatives
  • The Bankers’ Perspective of Freight Derivatives
  • Accounting and Tax Perspectives
  • Setting up a Freight Rate Risk Management Department

Jennifer JonesAs part of my series of interviews with Triple Point clients, I recently had the chance to sit down with Thomas Harvey, CIO and VP of Information Technology at The Energy Authority, to discuss industry changes and how they use technology to operate effectively in the energy marketplace.

Q: What are some of the major trends driving your industry and how do you see it changing in the next few years?

Thomas: The Dodd-Frank Act and what’s happening with the CFTC is the hot topic. We’re looking at our business policies and technical systems across several areas–transaction and position reporting; audit-ability; credit management; and documentation–to ensure we’re ready to meet additional reporting requirements.

From an IT perspective, we see technology becoming less about automating routine tasks and processing data; it’s more about mining data for information we can act on. Some of what’s driving this is the world in which we live and our reliance on immediate information exchange. Technology enables us to capture and access huge amounts of data, and the ubiquitous presence of it in our lives means our workforce is increasingly more technically savvy and astute to analyzing the information available to them. Service providers that quickly provide actionable information to move businesses forward will be market leaders.

Q: What are some of the business issues that keep you up at night?

Thomas: Technology is an underpinning of TEA’s ability to operate effectively in the energy marketplace…so we’re always questioning where we should be investing our efforts and resources in terms of improving business processes. We are cognizant of how we can provide reliable, cost-effective competitive advantages to our traders, power managers, schedulers, and analysts.

The Energy Authority Quote

Q: What were the major business drivers in moving to Triple Point’s Enterprise Solution?

Thomas: Having trading, scheduling, and risk management functionality on a common platform was key. Triple Point enables us to manage both transaction and decision-making information in one solution: physical and financial transactions for power, gas, and oil; scheduling; and credit risk management.

Q: In addition to your current business, how do you see Triple Point supporting TEA’s future expansion?

Thomas: TEA represents 46 Public Power Utilities throughout the United States, and we wear multiple hats to support our partners. Triple Point truly understand the complexities of our business, and this provides great peace-of-mind. With Triple Point, we have the infrastructures in place to support our business strategically, now and in the future. If you really look at what TEA offers, a cornerstone of our business is risk management. The value that Triple Point provides in our risk management practice will continue to be a contributor to our success.

Q: What have been the biggest benefits of implementing the Triple Point Solution?

Thomas: I’d be remiss in not mentioning the exceptional Triple Point staff we work with. Our success with the implementation of Triple Point’s commodity management and credit risk platform is built upon the dedication of some very smart, hard-working individuals. Triple Point provides an outstanding implementation team and superior customer support. They’ve been invaluable in educating our team on the inner working of the Commodity XL product and have been fully engaged in helping craft solutions for our unique requests. It’s really the whole package, Triple Point’s software and people, which brings benefit.

Jennifer JonesI recently had the opportunity to sit down with New Zealand Mint’s Michael O’Kane to discuss his thoughts on the precious metals market, what keeps him up at night and how Triple Point has helped them expand their product offering.

Q: How does precious metals volatility today compare to the last few years?

Michael: During the financial crisis in 2008 we saw the price for gold jump by over $50 in an hour, which is generally unheard of.  A comparison to this would be during the oil crisis in 1980 when the price of gold increased by several hundred dollars over a period of a few days. Currently we’re seeing movements of up to $30 per day as the market reacts to different events and announcements.

Q: Gold and silver have recently hit record highs. What are the drivers and will they continue?

Michael: You’ve got historical drivers of supply and demand and reaction to inflation, as historically, gold is anti-inflationary. This is only part of what’s driving the price of gold and silver today— everything that’s been put in place for quantitative easing is, in the long-term, inflationary. Another driver is supply. Gold demand has recently increased by thousands of tons a year. Retail demand in China alone has increased by 70% from 2009 to 2010. With an average of 10 years for a goldmine to come on line, we’re still years away from supply increasing to meet that demand. All of these factors lead to a huge boom in the precious metals industry.

Q: What issues keep you up at night?

Michael: Security — from electronic to physical. We’re dealing with hundreds of millions of dollars of products per day. Triple Point’s precious metals solution enables New Zealand Mint to maintain our electronic security in trading positions: what we hold in inventory; where it is and who’s doing what with it; and physical security: where and what volumes of coins and ingots we have. Another factor is mitigating exposure to supply shortage. During the 2008 financial crisis, most major suppliers in the world from the US Mint all the way to New Zealand Mint and other secondary suppliers ran out of physical stock.

Q: Do you view Triple Point as a strategic partner?

Michael: Definitely. Triple Point provides us with the ability to manage security and grow our offerings — including Minting, manufacturing, and day-to-day trading with both suppliers and clients — on one system. Triple Point is helping us increase our global presence.

Q: What were the major business drivers in moving to the Triple Point solution?

Michael: Prior to Triple Point, we had five different products to handle our lines of business and security. At the end of the day, that becomes very cumbersome. Having Triple Point’s system, almost out of the box, cover all of our business requirements and do it elegantly is very difficult to argue against.

Q: What are some of the tangible benefits New Zealand Mint has gained with the Triple Point solution?

Michael:  Before Triple Point, it took an hour or two to get a hard figure on our exposure because we were using several systems to map it. Now we don’t need three people calculating what our cash or metal position is. It takes one person about two seconds. Triple Point also provides the functionality to handle un-allocated trading locally. In effect, Triple Point is helping to expand our product offering so we can conduct business in all corners of the planet.

Gold BarsKarur Vysya Bank (KVB), India’s leading private sector bank, has licensed Triple Point’s commodity management software to control precious metals price volatility in its newly established bullion business.

Founded in 1916, KVB operates more than 350 branches across India and reported revenue of $8 billion for the financial year ending March 2010. New to the precious metals market, KVB was seeking a comprehensive commodity management platform to effectively handle inventory, reconciliation, risk, and regulatory compliance. Triple Point’s Commodity XL for Precious Metals™ provides KVB with advanced stock and inventory management, secure transaction processing, and a real-time view of risk across the enterprise.

More than 60% of all gold imported to India is transacted through Triple Point’s precious metals software to manage complex wholesale bullion operations. Triple Point bullion customers include HDFC Bank, ICICI Bank, Standard Chartered Bank, Kotak Mahindra Bank, Diamond India, AXIS Bank Limited (formerly UTI), State Bank of India, Bank Muscat, Su-Raj Diamonds, and the Indian Bullion Market Association (IBMA).

“Triple Point’s precious metals software is the leading market-proven solution for the treasury bullion business,” said Mike Ravo, VP, industry solutions, Triple Point. “The system monitors client exposure and margins in real-time, integrates trading and logistics, and supports robust risk management and compliance. We welcome the opportunity to help KVB manage its new bullion business, as well as future growth.”

Posted in: @Triple Point   |   Tagged 

HMEL LogoTriple Point Technology announced today that HPCL-Mittal Energy (HMEL) has licensed Triple Point’s Commodity Management Solution to manage crude supply and product marketing, logistics, and regulatory risk including compliance with IAS 39 disclosure and reporting. Triple Point continues its rapid expansion across the Asia-Pacific region (APAC) with new customers in energy, manufacturing, precious metals, transportation, and food and beverage.

HMEL is a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investment Pte Ltd — a Mittal Group company and owner of the world’s largest steel company. HMEL was established to operate a major oil refinery in India, producing high value petroleum products.

HMEL selected Commodity XL™ to provide real-time visibility into market position and exposure and to support supply chain logistics and inventory management.

In addition to HMEL, notable Triple Point customers in Asia Pacific include: DCP Trading Shanghai (base metals, Hong Kong), IFFCO (agriculture, Malaysia), Petredec (LPG trading, Singapore), Prime East (commodity logistics, Hong Kong), New Zealand Mint (precious metals, New Zealand), Incitec Pivot (chemicals, Australia), BPCL (Oil, Mumbai), Reliance Industries (Oil with users in Mumbai, Singapore, London, and Houston), and State Bank of India, HDFC Bank, and ICICI Bank (precious metals, India).

“Asia Pacific is a strategic market for Triple Point, and with offices in Singapore, Pune, Sydney, and Chennai, and over 200 staff in the region, we have the infrastructure in place to provide our current and future customers with competitive advantage,” said Michael Schwartz, chief marketing officer, Triple Point. “We welcome HMEL to our Asia-Pacific family and look forward to working with them for years to come.”

Posted in: @Triple Point , Success Stories   |   Tagged  Asia, Commodity XL, CTRM

SAP PartnerI recently had the opportunity to sit down with Carlos Lebrija, VP of Solution Development at Triple Point, to discuss Triple Point’s unique partnership with SAP and highlights of the recent Commodity SL 7.3 release.

Q: What is Triple Point’s partnership with SAP?

Carlos: Triple Point and SAP co-developed a commodity trading, risk, and operations software platform — Commodity Management™ — which utilizes best-of-breed components from both SAP ERP and Triple Point’s Commodity SL™. Commodity SL is the only solution endorsed by SAP in the commodity trading and enterprise risk management area.

Q: How did the partnership with SAP evolve?

Carlos: Through a very rigorous due diligence process, SAP picked Triple Point to partner with form all other major competitors in the CTRM space.  That speaks volumes not only to our solution, but also to the people in our organization that helped influence that decision. Over the years, our work together has only gotten tighter, the result of which is Release 7.3.

Q: Describe the early days on the project…

Carlos: In the early days of 2005, it was just a handful of people from Triple Point and SAP working via multi-hour, multi-screen, multi-whiteboard conference calls.  Today, there are over 70 people across both organizations working to service and bring innovation to Commodity SL customers and prospects every day.

Q: What makes Commodity SL 7.3 so significant?

Carlos: The 7.3 release provides full front-to-back integration — incluging master data, physical trades, logistics and settlement — for the first time. Commodity SL is now on equal footing with the Commodity XL platform.

Q: What are the high points of Release 7.3?

Carlos: As we laid the foundation of Commodity SL, we learned more and more about SAP and how it worked. This enabled us to develop tight integration with SAP methodology, dramatically reducing integration risk. In 7.3, the integrated solution now fully supports the most crucial elements of a complete physical trading scenario, including provisional pricing; secondary costs; a logistics model that matches SAP’s document structure; user-friendly message monitoring; and an incredibly robust technical infrastructure with automated log reprocessing, to name just a few.

Q: Now that Commodity SL is a full-blown solution, what’s next for Industry Solutions?

Carlos: We always have a few tricks up our sleeve…

Learn more about Triple Point’s Commodity SL for SAP >>

World Fuel ServicesWorld Fuel Services Corporation (NYSE: INT) has selected Triple Point’s flagship commodity management platform to support trading, scheduling, counterparty credit risk, and regulatory risk for its global fuel marketing operations.

Headquartered in Miami, Florida, World Fuel Services is a global fuel logistics company, principally engaged in the marketing, sale, and distribution of marine, aviation, and land fuel products and related services. World Fuel Services sells fuel and delivers services to its clients in 200 countries and at over 6,000 locations, including airports, seaports, tanker truck loading terminals, and other customer storage locations.

“Price volatility is driving the rapid adoption of sophisticated, enterprise risk platforms by energy and commodity companies,” said Peter F. Armstrong, president and CEO, Triple Point. “Triple Point has become the solution of choice amongst fuel marketers, and we look forward to supporting World Fuel Services now and in the future.”

World Fuel Services licensed Commodity XL™ for Oil, Gas, Emissions, Credit Risk, Hedge Accounting, and Fair Value Disclosure. The company also purchased Triple Point’s interactive business intelligence module, Commodity XL Management Dashboard™ and Commodity XL PhysOps ‘Visual Cockpit’™ to help schedulers plan, conduct, and optimize shipments in real time.

Posted in: @Triple Point , Success Stories   |   Tagged  Commodity Management

Ocean TankersOcean Tankers has licensed Triple Point’s chartering and vessel operations software to manage all pre- and post-fixture activities for its wet bulk shipping operations. Ocean Tankers specializes in the transportation of petroleum and related products and provides worldwide coverage.

Incorporated in the Republic of Singapore in 1978, Ocean Tankers has over 2.3 million DWT (Deadweight tonnage) of carrying capacity and services a wide network of customers, including oil majors, state-owned oil companies, and international trading houses. The company manages a fleet of 83 vessels, ranging from small coastal vessels to large ULCCs (Ultra Large Crude Carriers).

“Shipping is a key element of an efficient and effective commodity supply chain, and Triple Point provides the only commodity management solution with the functional depth and breadth to handle voyage estimating, post-fix operations, bunker procurement, and freight risk management in its shipping platform,” said Michael Lolk Larsen, managing director, chartering and vessel operations, Triple Point. “Triple Point is proud to include Ocean Tankers as a customer, and we look forward to supporting its growing operations.”

Triple Point is successfully claiming market share with a diverse group of commodity participants, energy companies, industrial manufacturers, CP companies, and ship owners/operators that have selected Triple Point to manage the supply and distribution of commodities via ocean-going vessel, including: Bunge, Louis Dreyfus, Transgrain (Nidera), Olam International, Glencore, Gunvor International B.V., Hindustan Petroleum-Mittal Energy, SAB Miller, Petredec Limited, Prime East Shipping, Berge Bulk, Beluga, United Arab Chemical Carriers (UACC), and U-Sea Bulk. Bulk Carriers (HBC) has licensed Triple Point’s chartering and vessel operations software to manage pre- and post-fixture activities for transporting dry bulk commodities, including coal, aluminum, petroleum coke, fertilizer, cement, clinker, scrap, grain, steel, pig-iron, and ore.

 Founded in 1999, HBC transports an average of 6 million tons of cargo a year. In recent years the company has chartered over 500 vessels from Handysize to Panamax size.

“Triple Point’s chartering and vessel operations software provides HBC with the functional depth and breadth to profitably manage operations, including voyage estimating, post-fix operations, and bunker procurement,” said Michael Lolk Larsen, managing director, chartering and vessel operations, Triple Point. “Triple Point is proud to include HBC as a shipping customer and looks forward to supporting future growth.”

Triple Point is successfully claiming market share with a diverse group of commodity participants, energy companies, industrial manufacturers, CP companies, and ship owners/operators that have selected Triple Point to manage the supply and distribution of commodities via ocean-going vessel, including: Bunge, Louis Dreyfus, Transgrain (Nidera), Olam International, Glencore, Gunvor International B.V., Hindustan Petroleum-Mittal Energy, SAB Miller, Petredec Limited, Prime East Shipping, Berge Bulk, Beluga, United Arab Chemical Carriers (UACC), and U-Sea Bulk.

Posted in: @Triple Point   |   Tagged 
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