Operational Enhancement
A large U.S. Midwestern power cooperative faced a pivotal challenge in optimizing its trading portfolio reporting. Despite a successful system upgrade, the cooperative encountered a significant hurdle. They had established a robust book structure for their natural gas trading, and their power trading needed a similar differentiation of trades in the system. This deficiency hampered effective reporting on power trades, leading to an inability to discern regional, strategic, or activity-based performance metrics. Consequently, the cooperative’s management needed more granularity to make informed decisions and identify areas for portfolio improvement.
KEY RESULTS
37%
Improved Data Accuracy: Quarter on quarter from the time of deployment
0.5%
Enhanced Operational Efficiency: Reduced errored trade count total trades per day
40%
Risk Mitigation: Increase in timely reporting to trade repositories
~2000 hours
Streamlined Reconciliation: Reduced manual verification hours for front-office (2 Desks & 7 Members)
A Strategic Approach to Project Success
To address this challenge, the power cooperative engaged with Value Creed in applying the successful natural gas book structure model to their power trading portfolio. Drawing on years of industry experience and deep domain knowledge, Value Creed initiated a strategic approach to implement an effective solution:
User Interviews and Analysis: Value Creed conducted comprehensive interviews with the cooperative’s power traders, middle office personnel, and back office/ reporting teams. Leveraging our extensive advisory experience, we facilitated collaborative discussions and conducted in-depth analysis to uncover specific requirements and challenges faced by the cooperative.
Iterative Structure Development: With our extensive expertise in trading operations and technology, Value Creed proposed multiple iterations of the book structure. Each iteration was carefully crafted to align with the cooperative’s unique trading activities, regions, and strategic objectives. Feedback from the cooperative’s stakeholders was integrated to ensure the structure’s effectiveness, leading to the next iteration of the proposed structure.
Mock-up and Testing: Using a test environment within Allegro, Value Creed configured the proposed book structure and applied it to actual power trades. This facilitated real-time visualization of how trades would be categorized and reported within the system, enabling the cooperative to provide valuable feedback and refine the solution iteratively.
Consensus Building: Throughout the process, Value Creed facilitated collaborative sessions involving the cooperative’s stakeholders to ensure alignment and consensus on the finalized book structure. Through iterative refinement, we were able to tailor the solution to meet the specific needs and objectives of the client.
Enhanced Management Focus: The implementation of a comprehensive book structure empowered the cooperative’s management with granular insights into their trading portfolio performance. With the ability to analyze performance metrics at a detailed level, management could identify areas of strength and opportunities for improvement more effectively.
Value Creed Services Mobilized:
Expertise on Demand
Unlock operational effectiveness and elevate the efficiency and reliability of your database through Value Creed’s services. Optimize performance with fast and accurate data extraction, reconciliation, calculation, and reporting.
Advisory
Our Advisory services not only will help you guide your operations but also help you achieve your vision by taking all stakeholders into consideration. Our highly experienced team has combined full lifecycle, functional and technical expertise to deliver frameworks and guidance around building reliable and scalable commodity trading businesses.
Key Takeaways
Are you facing challenges in optimizing your trading portfolio reporting, just like the power cooperative in our case study? We specialize in delivering transformative solutions tailored to your unique needs. Our experienced team combines deep industry knowledge with innovative strategies to help you overcome obstacles and drive success. Whether you’re seeking to streamline reporting processes, enhance data accuracy, or gain actionable insights, we’re here to guide you every step of the way. Contact us now to revolutionize your trading portfolio and gain a competitive edge.
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