ETRM – accurately view and improve the profitability of physical oil trades - Inatech
- March 31, 2017
- Posted by: Inatech
Oil price volatility continues to put the industry under pressure. This means it is even more essential for oil trading companies to be able to monitor profits, margins and operating costs in order to respond to changing market conditions.
As a physical oil trader this means you need to be able to accurately view and report on the profitability of each trade.
Yet for many traders, monitoring a physical oil trade is too complex and reporting on profitability too time consuming because the data is either recorded manually, is on a number of spreadsheets or is stored on outdated legacy systems that require time and often computer programming to access.
When working with oil traders we regularly encounter these kinds of challenges. By working alongside the largest trading companies we help oil traders manage risk, monitor trade profitability and streamline and support operations across their supply chain – using the very latest Energy Trade Risk Management (ETRM) solutions.
The benefits of an ETRM system
By implementing an ETRM system companies can:
- Manage market, counterparty and operational risks more effectively
- Control operational complexity and directly impact profitability
- Access a consolidated view of the business. This simplifies decision making and puts you back in control.
- Improve profitability through trade economics, accurate pricing formula and MTM
- Streamline operations and so drive greater efficiency
- Reconcile trades in real-time
- Have a solution that works across everything from trading to invoicing
ETRM systems give you better control of your business, provide a clearer view of the supply chain and cost-base, and can be used to drive improvements across an organisation.
Cloud-based ETRM products offer the most cost-effective solution
In a business where profitability and cost management is so critical the conversation will inevitably come down to the price of such systems on the market. This is where you need to look at cloud-based ETRM products.
In the majority of cases these types of solution will be offered using a subscription based model. This means such cloud purchases avoid internal capex negotiations, often saving time in getting a project approved and in securing funding.
Cloud products offer so many benefits. For example they are easily scalable, so the systems grow as your business grows and you don’t need to worry about it running out of capacity.
Cloud-based applications and services can be accessed from anywhere, as long as there is a device with an internet connection. And when compared to on-premise applications, cloud products are faster to implement and will always run on the very latest software.
Products can be supplied off-the-shelf or are customisable, depending on business and operational needs.
So as you look to respond quickly to market uncertainty, implementing a cloud-based, end-to-end integrated ETRM system that delivers an accurate view of profitability, streamlines operations and transforms your business, could well be the fast and cost-effective solution to your business needs.
Inatech is a global provider of cloud ETRM and fuel management software for the physical oil trading and marine industries. One of its products is designed to address the business challenges facing physical oil traders – techoil.com.