Commodity Trading

Expand Your Commodity Trading

With River Logic

Making optimal decisions in trading requires promptly seeing and acting on the interplay between market demand, capacity availability and a company’s existing commitments. By understanding the trade-offs (e.g., sell vs. buy, convert to LNG vs. not) across a full portfolio of contracts, logistics commitments/constraints and their financial implications, River Logic guides the trader to better decisions that oftentimes remain unseen with other approaches.

Evaluate capacity decisions including production sourcing, shift configurations and use of regular and over-time labor by production lines

Consider trade-offs between capacity, inventory build-ahead, service level and financial performance

Efficiently allocate investments including six-sigma projects, machine re-builds, brownfield and greenfield expansions considering operational impacts (e.g. uptime, throughput, asset flexibility) and financial performance (revenue, profit, NPV)

A Step-by-Step Guide

to Driving Business Impact with Capacity Panning

What can you do with it

Optimize origination and new customer bids across regions by simulating potential trades and understanding their impact against an optimized portfolio

Optimize arbitrage opportunities, including contract fulfillment from spot market

Identify and optimize opportunities for cross-commodity arbitrage (e.g., consider Gas/LNG liquefaction/gasification) import and export markets, storage and terminal capacity

Optimize pipeline nominations across different pipelines and by segment

Understand the impact of different plans given the uncertainty of inputs and prices, and ultimately determine the appropriate risk management strategies

Understand the impact of different plans given the uncertainty of inputs and prices, and ultimately determine the appropriate risk management strategies

Rapidly react to changing dynamics in the marketplace through what-if scenario analysis and avoid losses that would have occurred in the past.

Unique Value / Impact

Dramatically improve the effectiveness and return on investment from the trade promotions you’re running

Increase net revenues by 2% or more

Reduce cost per incremental dollar by as much as 30%

Facilitate mutually beneficial negotiations with partners

Capture ROI quickly through rapid deployment

River Logic Demonstration

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