Risk Management

With a volatile global fuel market, it’s crucial to maintain your competitive advantage by streamlining the order-entry process for sales reps and ensure a low-latency flow-through process for customers.

Allow better predictability in managing fuel inventories and revenues while ensuring process sustainability and IT governance for a business-critical system with Third Wave’s Risk Management Accelerator.

Lack of Merchant Efficiency

Due to the number of systems involved, including custom tools – there is an inordinate amount of time entering and administering orders which means lost time selling.

High Throughput Times

Due to end-to-end processing delays between systems, the customer can often receive the wrong price requiring manual intervention.

Inconsistent Data

Due to use of an open system using spreadsheets and databases, reps can individually adjust business rules and costing creating inconsistencies in margin calculations.

Unpredictable Margins

Constant market movement, external variables, and internal processing delays can lead to margin errors in just the time is takes from purchase to lift.

What it is

The Third Wave Risk Management Accelerator provides a central order entry and tracking system for Managers, Sales Representatives, Pricing Analysts, Financial Analysts and Energy Traders involved in the buying and selling of NYMEX futures contracts. The system provides cross-functional teams with a uniform business process and shared view of wholesale accounts, contacts, service agreements, products, terminals, orders, cost cards, market indices and contract pricing.

How it works

  • Enables low transaction processing times and near real-time purchase-to-lift contract pricing via open system APIs.
  • Provides access to account and contact information, including account Sold To and Ship To hierarchies, credit histories and master contracts, synchronized with ERP master data.
  • Leverages daily market basis data and internal cost cards to generate customer, terminal and product specific pricing differentials, balancing incentives and margins.
  • Incentivizes customer purchasing by adjusting customer, product and terminal specific pricing, including the ability to review historic pricing, or apply segmented pricing across customer groupings.
  • Generates daily customer quotes, order confirmations and trade requests.
  • Reduces order entry time for multiple contracts with the option to split an order across terminals and products.
  • Tracks and reports on futures contracts including customer, product, terminal and Sales Representative margin analysis.
  • Tracks futures contracts ordered across all channels in order to ensure the correct fulfillment coverage on the trade desk.
  • Applies an average, weighted cost to each order purchased online to smooth out daily margin variances on individual orders.
  • Runs estimation scenarios with real-time market futures pricing.

The Benefits

  • Increased time selling contracts and decreased time administering contracts.
  • Standardized business processes allowing for consistent pricing, costing and order entry across Sales Representatives.
  • Reduced transaction processing times using cloud/on premise integration technologies.
  • Smooth migration of home-grown application to scalable platform.
  • Business critical functionality migrated under a standard IT governance and life-cycle management process.
  • Reduced time for onboarding new Sales Representatives and support staff.
  • Eliminated need for manual reconciliation of liftings.
  • Pricing modifications based on time of year and location of terminals.
  • Automated recommendations on when to purchase based on real-time market analysis.