It should come as no surprise that the commodity industry is predicting a continuation of 2012’s market volatility and slow economic growth for the balance of 2013. Regional economies that were thought to be in recovery are now slipping back into recession. Major commodity price fluctuations are expected to persist, and global demand for oil is expected to rise only 0.8% to 90.4 million barrels per day this year. Volatility will continue to be influenced by the euro-zone debt crisis, fluctuating demand in Asia, and continued political unrest in the Middle East.
Commodity-consuming companies are challenged to respond to this volatility with supply chain strategies that drive top line performance while protecting the bottom line. A strong pricing risk management strategy is essential to remain competitive. However, it is not the only strategy that must be considered. The profitability advantages gained from insightful commodity purchasing and trading decisions can be obliterated by a poor volume management strategy that quickly erodes margins by causing costly mistakes such as expedited shipments, lost orders, missed sales opportunities, poor inventory staging, stock-outs and overruns.
Global volatility only adds to the planning challenge. The importance of maintaining an accurate volume demand forecast, production schedule, distribution schedule, and inventory management strategy should not be lost on anyone.
Triple Point’s Supply Chain Optimization (SCO) solutions help you address your risk mitigation strategy from a volume point of view. Triple Point SCO integrates your data silos into a single planning database, allowing everyone to collaborate on one set of numbers to arrive at a highly accurate volume demand plan. This plan then drives more efficient downstream production planning and scheduling decisions which translates to higher utilization, higher service levels and reduced inventory costs. Learn more.
I’m excited to share the news that Triple Point has acquired WAM Systems, the premier provider of supply chain planning and optimization solutions for the process industry.
WAM has an impressive presence in the chemical industry, and its solutions are also beginning to see adoption within other process industry segments including oil and gas, pharmaceuticals, CPG, and food and beverage. WAM’s worldwide customer base includes leading companies such as PTT Global Chemical, Saudi Aramco, Celanese Chemicals, LyondellBasell, Honam Petrochemical, Indian Oil, PetroChina, Sasol Oil, and Solvay.
Like Triple Point’s previous acquisitions, the WAM acquisition furthers Triple Point’s commitment to having the most comprehensive, advanced solutions for handling all the financial and physical aspects of Commodity Management. Softmar was acquired for its superior chartering and vessel operations solution, and QMASTOR for its exceptional coal and mineral supply chain solutions. Acquiring WAM – the premier provider of process industry supply chain solutions – made perfect sense as a next step.
The process industry is facing many challenges including extreme raw material price volatility and increasingly complex global supply chains. This business environment mandates that process manufacturing companies leverage advanced technology solutions to ensure efficient and profitable operations. With the acquisition of WAM, Triple Point now offers the only Commodity Management solution that optimizes all the physical and financial supply chain complexities that process manufacturing companies deal with on a daily basis.
Uncertainty looms large in the European Gas and Power markets. What could cause the next big shock? Are you confident you are prepared for the next crisis? Policy developments and structural changes, such as the Electricity Market Reform (EMR) initiative in the UK, may drive extreme price volatility and uncertainty.
Triple Point recently hosted a webinar on How to Survive and Thrive in Volatile European Gas and Power Markets. One of Baringa’s European Energy Market experts, Nick Tallantyre, shared the key issues driving volatility in the European Gas and Power Markets –– and how to protect against them. Triple Point’s Mark Earthey provided an in-depth overview of Triple Point’s European Gas and Power Solution.
It was a very interesting event full of valuable ideas on how to gain clarity in today’s uncertain world. Attendees learned:
- Key market implications arising from the structural and policy changes to the energy markets e.g. the Electricity Market Reform (EMR) programme in the UK
- What European market participants must do to prepare for growing global market connectivity
- Proven strategies to protect against market volatility
- How to optimize portfolios and improve trading operations
- How Commodity XL provides a real-time view of exposure, manages enterprise risk, and handles scheduling — all on an integrated platform
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.
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.”
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.
I’m excited to share the news that Triple Point has announced its acquisition of QMASTOR. QMASTOR is the premier provider of software solutions to manage the tonnage, quality, and value of coal and mineral supply chains from “pit” to the point of export, refining operations, or consumption. As the Australian-based company says itself, their solutions help deliver “the right bulk material in the right place at the right time and at the right cost.”
Consistent with Triple Point’s previous acquisitions (Energy Crossroads, TradeWell Systems, CoralGrid, INSSINC, ROME, Softmar, and Enerbility), the acquisition of QMASTOR is completely complementary to the rest of the Triple Point product set. Triple Point’s vision has always been to provide organizations a comprehensive solution to more efficiently and profitably manage the complete commodity value chain from production to consumption.
With QMASTOR’s flagship product, Pit to Port, we are now able to offer bulk commodity-specific functionality from one end of the supply chain (e.g., the mining pit) to the other (e.g., the power generation plant) for coal and other minerals. QMASTOR’s clients are some of the most prominent natural resource companies in the world and include BHP Billiton, Rio Tinto, Vale, Anglo American, Xstrata, and Peabody Energy.
Triple 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.
Oracle’s annual OpenWorld conference was held in San Francisco last week, and Triple Point’s chief technology officer, Doug Daugherty, took center stage to unveil the results of Triple Point’s Oracle Exadata benchmark study. The study took place over a two-week period in Oracle’s Exastack Lab and demonstrated Triple Point’s record performance levels for the near real-time valuation of massively large and complex commodity trade portfolios.
The Q&A session that Daugherty took part in was mediated by Judson Althoff, SVP of worldwide alliances & channels and embedded sales, Oracle. As one of three featured Oracle Exastack Ready partners, Daugherty described Triple Point’s two-week performance trial with Exadata to an audience of over 4,500 Oracle stakeholders.
Doug reports that there was a lot of buzz at the conference about the newly launched Oracle Exastack Program. Triple Point is excited to be one of the key inaugural members of the program.
• The Oracle Exastack Program helps enable ISVs and other OPN members to rapidly build and deliver faster, more reliable applications.
• Since the Oracle Exastack Program was launched just over three months ago, partners have achieved over 150 Oracle Exastack Ready milestones for Oracle Solaris, Oracle Linux, Oracle Database or Oracle WebLogic Server. This rapid adoption of the program is a testament to the importance and value both partners and Oracle place on these kinds of enablement resources.
• Partners include ADP, Beijing Teamsun, cVydia, Essatto, F5, GoldenSource, INFOPRO, IBIS, Informatica™, I-ON, Lingotek, Neusoft, PhinCon, Smart Developer, Solix, Teleran and Triple Point, among others.
• By deploying their applications on Oracle Exadata Database Machine and Oracle Exalogic Elastic Cloud, ISVs can reduce the cost, time and support complexities typically associated with building and maintaining a disparate application infrastructure – enabling them to focus more on their core competencies, accelerating
By achieving Oracle Exastack Ready status, Triple Point can use available Oracle Partner Network (OPN) resources to optimize its applications to run faster and more efficiently — providing increased performance and value to its customers.
The charge to achieve Exastack Ready status was lead by Triple Point’s Emerging Technolgies Group. The ETG is responsbile with staying abreast of the fast-moving and dynamic technology markets to guarantee that Triple Point maintains its significant leadership position in the use of technology to solve critical business problems. They conceive, design, and prove — with lab-based experiments and scenario simulation — next generation advancements to Triple Point’s Commodity XL™ technology architecture for continued excellence in scalability, high concurrency, and processing performance.
As Doug recently said in a press release regarding the conference, “Triple Point has always prided itself on having the most advanced technical architecture and delivering the best performance and reliability. Achieving Oracle Exastack Ready status is another example of Triple Point’s commitment to maintaining its technological leadership.”
I look forward to seeing how the Oracle Exastack program grows. If the response it received at OpenWorld is any indicator, it looks like it is going to be huge success. Triple Point is proud to be a part of the program and looks forward to OracleWorld 2012.
Pacific Carriers Limited, the global shipping and logistics subsidiary of Kuok (Singapore) Limited, has licensed Triple Point’s chartering and vessel operations software to manage supply chain cost and enterprise risk for its dry bulk commodities business.
Pacific Carriers Limited is a leading dry bulk operator with a growing fleet of product tankers, as well as offshore support vessels. It is a wholly-owned subsidiary of Kuok (Singapore) Limited, one of South-East Asia’s largest commodity houses trading in scrap steel, agricultural commodities, fertilizers, and chemicals.
With continuing growth in global commodity supply chain operations, the ability for organizations to control the cost and risk of transporting freight, including freight rate volatility, is key to managing overall supply chain cost and enterprise risk. Triple Point’s chartering and vessel operations software enables organizations to comprehensively manage freight rate risk, chartering, and post-fix operations on an integrated platform.
“For companies exposed to raw material, energy, and commodity price volatility, the need for a sophisticated commodity management solution to manage the buying, selling, risk, storage, processing, and transportation processes has never been greater,” said Peter F. Armstrong, president and CEO, Triple Point. “We are honored to add a customer of Pacific Carrier’s stature to our growing client base.”