TRIPLE POINT BROCHURE Strategic Planning and Procurement ADVANCED SUPPLY AND DEMAND PLANNING / COVERAGE REPORTING AND ANALYSIS / DECISION SUPPORT TRIPLE POINT TECHNOLOGY, INC. TPT.COM
Strategic Planning and Procurement (SPP) OVERVIEW For over seventeen years, Triple Point Technology has deployed systems to the world s most successful global commodity houses, energy companies and manufacturing organizations, enabling them to proactively manage the physical and financial buying, selling, logistics, scheduling, accounting and risk management of multiple commodities on an integrated platform. Today s business environment has unprecedented complexity and pressures making the management of coverage, supply chains and profit margins more difficult than ever before. Right Product, Right Place, Right Time The goal in balancing supply and demand is to get the right product to the right place at the right time to optimize profitability. As commodity and energy prices have become much more volatile in recent years, it has made balancing the physical and economic plans more difficult. When volatile commodity prices are coupled with longer, more global and complex supply chains, and then sustainability pressure to lower emissions is added to the mix, it can become a Herculean task. Market-Based Supply Chain Organizations must be able to look across alternative deals including sourcing alternatives, associated Key Benefits Analyze and compare sourcing alternatives Manage source-to-cash commodity supply chain Survey: 100 global companies transport outlays and plant operation costs to determine the best transaction. Solutions require simulation modeling of scenarios, along with real-time business intelligence to support decision making. Profit and loss has to be measured against the market and not just budget or plan to determine true operational performance. All associated costs including raw materials, freight, packaging, emissions, FX, basis, fuel for plant operations, broker fees, insurance, port fees, etc. need to be included in the analysis in order to manage a commodity source-to-cash supply chain. Advanced Commodity Solution Commodity XL is the only software platform that provides a market-based, source-to-cash commodity supply chain solution for power, gas, bulk, liquid and packaged commodities, including advanced risk analytics, sophisticated decision support and realtime Key Performance Indicators (KPIs) to enhance executive decision-making. Regulate inventory based on market data Increase visibility into positions Implement effective hedge strategies Synchronize information flow throughout the supply chain Provide real-time Key Performance Indicators (KPIs) SUPPLY AND DEMAND PLANNING It s imperative that the physical and economic plan meet corporate gross margin targets while managing operational requirements to fulfill customer demand. The solution must have the power and flexibility to manage across all commodities, suppliers, transportation modes, assets, locations, currencies, exchanges and time periods. TRIPLE POINT TECHNOLOGY, INC. 2
Fueled by a tough economy where cash is king, expense reduction is required, and cost savings are critical to survival, sourcing technologies have become a commodity that most companies can no longer do without. AMR Research Commodity XL Strategic Planning and Procurement manages, measures, analyzes and reports coverage for an integrated physical and economic plan. The SPP solution includes all physical assets such as commodities, plants, storage facilities, tanks and silos, to name a few, and has the flexibility to manage different calendar and budget periods. Time-period definition is flexible to support an organization s requirements for longer dated periods like annual to monthly, weekly and daily granularity. As plans change to reflect market conditions, SPP provides the capability to look back and understand changes and drivers from version to version. Integrate supply, forecasted demand and trading plan Employ user-defined planning hierarchies and time periods Roll-up / drill-down layered forecast Integrate forecast into physical trading position Capture via grid, graphical, APIs, or Excel Import Analyze projected costs with forecasted quantities Break down to component prices (e.g., Futures, Basis, Freight, Credits, etc.) TRIPLE POINT TECHNOLOGY, INC. 3 COVERAGE REPORTING AND ANALYSIS The question in setting a plan is not whether there will be changes but how best to react to evolving economic, market, supplier and customer requirements. Visibility into data is required in real time with the analysis tools to create decision-making information. The traditional paradigm of analysts spending the majority of time collecting data versus analyzing information must be flipped to drive success. Commodity XL Strategic Planning and Procurement provides the complete, real-time reporting and analysis tools to manage operational coverage and to plan in fast-moving, complex business conditions. It delivers economic analysis to determine root causes of variances to planned costs, revenues and profit margins. All positions including storage, in-transit inventory and in-tank blending are integrated into coverage analysis. Open trading activity such as spot/forward, futures, options, term contracts, bulk and rack liftings and exchanges are also allocated to forecast. Covered and uncovered positions are updated in real time to ensure operational and economic plan efficiency and effectiveness. Manage logistics vessel, barge, pipeline, truck, railcar, etc. Automate allocations of trading to forecast (or user-defined) Allocate derivative to a hedge period
Every day I wake up and ask how can I flow data better, manage data better, analyze data better? Rollin Ford, CIO, Walmart (The Economist: Data, data everywhere ). Support link to hedge pool, plan, or more precise forecast allocations Handle partial trade quantity allocations Provide budget variance and impact reporting Assess projected variances based on current market data DECISION SUPPORT Simulation models and business intelligence tools are required in fast-changing markets to determine the best deal structure across the supply chain. Potential market shifts can change decisions across sourcing, logistics, operations, hedging and marketing. Sophisticated decision support systems provide advantage versus competitors working in spreadsheets. Strategic Planning and Procurement s simulation and business intelligence tools put you in control to make your company s most important bottom-line decisions. It delivers the speed, flexibility and ease-of-use needed to identify trends, problems and opportunities proactively and precisely. Simulation of potential scenarios is key preparation for the inevitable business climate alterations that will affect coverage. Simulate changes to raw material prices, energy prices, volatility surfaces, product qualities and inspection results, different timing of deliveries and multiple logistic schedules. Simulate impact of market changes to plan Update simulation parameters including: market prices and curves volatility surfaces timing of deliveries physical scheduling/logistics attributes product quality and inspection results Measure impact of plan changes to coverage and budget Gain real-time business intelligence Deliver flexible real-time reporting and data extraction Analyze Key Performance Indicators (KPIs) CONCLUSION Commodity XL Strategic Planning and Procurement is a revolutionary leap forward in the management, measurement and analysis of supply and demand planning and operations. SPP has the sophisticated analysis and reporting tools to manage commodity coverage in the fast-changing, complex commodities markets. Strategic Planning and Procurement is the only software product that provides a market-based, source-to-cash commodity supply chain solution for power, gas, bulk, liquid and packaged commodities. TRIPLE POINT TECHNOLOGY, INC. 4
Data are becoming the new raw material of business: an economic input almost on a par with capital and labor. The Economist: Data, data everywhere ABOUT TRIPLE POINT TECHNOLOGY, INC. Triple Point is the leading global provider of innovative software solutions to efficiently and profitably manage commodities and enterprise risk. Triple Point s growing, loyal customer base of over 260 companies represent all industries with exposure to energy and raw materials including oil and gas, coal, metals, agriculture, transportation, shipping, consumer products (CP), discrete manufacturers, and big box retailers. The company was named a Leader in Gartner s ETRM Magic Quadrant for its completeness of vision and ability to execute. Triple Point offers the only real-time solution to manage market/price, counterparty credit, operational, and regulatory risk on a tightly integrated platform. Founded in 1993 and headquartered in Westport, CT, USA, Triple Point employs over 600 people in 11 offices and support centers around the globe. How to Get Started To learn how Triple Point s Commodity XL software solutions can benefit your supply, marketing, procurement, hedging or trading activities, please contact us at one of our offices below. More information is available at www.tpt.com. Corporate Headquarters 301 Riverside Avenue Westport, CT USA 06880 Tel: +1.203.291.7979 Europe, Middle East and Africa Headquarters 24 Chiswell Street 6th Floor London EC1Y 4TY England Tel: +44 (0)20.7065.7650 Asia-Pacific Headquarters C 901 Pune IT Park Bhau Patil Road Pune, India 411 020 Tel: +91.20.2582.1010 Parsippany 222 New Road Parsippany, NJ USA 07054 Tel: +1.973.244.1661 Houston Brazil Singapore Chennai 11200 Westheimer Road Suite 705 Houston, TX USA 77042 Tel: +1.713.334.9339 Nações Unidas Avenue, 14171, Floor 15 São Paulo, SP 04794-000 Brazil Tel: +55.11.3568.2422 391B Orchard Road #23-01 Ngee Ann City Tower B Singapore 238874 Tel: +65.6832.5940 ESPEE IT PARK 7th Floor No.5 North Phase Jawaharlal Nehru Road Ekkattuthangal, Chennai 600097 Tel: +91.44.4217.7982 Geneva Cape Town Vienna Avenue de la Gare 25B CH-1180 Rolle Switzerland Tel: +41 (0)21.825.5656 157 Dorp Street 7600 Stellenbosch South Africa Tel: +27 21.883.8060 Babenbergerstrasse 9/18 1010 Vienna/Austria Tel: +43 18 9030 4090 TRIPLE POINT TECHNOLOGY, INC. 5