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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.

price

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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Performance Challenge

A major petroleum company had several manual issues that led to incorrect inventory balances. Users manually updated inventory balances across storage facilities, relying on RightAngle data. This process was error-prone and time-consuming, especially during month-end closing. It required several employees to spend several hours daily, with additional hours to correct discrepancies. Inventory data was also manually transferred from RightAngle to Excel daily, lacking automation for efficiency.

Value Creed’s proposed solution approached these challenges with our proprietary digital transformation strategies. The business can now make the current process efficient for the users by reducing manual efforts, improving accuracy, providing timely information, empowering better decision-making, and generating cost savings for the business.

KEY RESULTS

$280,000

Annual Cost Savings: Automated data comparison, reconciliation of inventory transactions, and distribution of inventory data from multiple reports

90%

 Time Savings: Efficiency achieved by automating manual inventory management tasks

Digital Transformation & Advisory Services

Our team of experts invested time in understanding the business’s needs and challenges, creating a solution featuring four specialized jobs: Physical Inventory Interface, Terminal Inventory Recon, Auto-Agree, and Third-Party Inventory Outbound. These jobs automated data comparison, updates, reconciliations, and scheduled report distribution.

Additionally, we developed custom reports updated by these jobs. This solution saves significant time and money by automating manual inventory tasks (estimated at 18-21 hours daily) and digitally transforming the inventory reporting system. To address the business needs, we delivered a comprehensive solution to achieve the desired results through the following services:

Business Analysis: Our team assessed the client’s business needs, gathered information, and analyzed data to identify areas for improvement.

Solution Design: We created a solution design that met the client’s requirements and incorporated best practices for digital transformation.

Custom Reports and Jobs Development: We developed custom solutions in RightAngle to automate and streamline the client’s business processes.

Data Integration: We integrated data from multiple sources and developed data integration solutions to ensure data accuracy and completeness.

Quality Assurance and Testing: We ensured the quality and reliability of the developed solutions through rigorous testing and quality assurance processes.

Project Management: We managed the project to ensure timely completion within budget and meeting client requirements.

Value Creed Services Mobilized:

Advisory Services

Advisory Services

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. 

Digital Transformation

Digital Transformation

Obtain the most appropriate and useful data for your specific needs! Value Creed offers a range of services to support you during your data transformation journey. With expertise in data integration, reporting, and performance optimization, we assist in ensuring that your data is optimized for analysis, visualization, and validation.

Key Takeaways

Value Creed offers a full suite of services to provide a comprehensive solution tailored to meet client’s needs and enhance their business processes. With our RightAngle customizations, users could streamline the inventory reporting process with the help of detailed insights into their inventory positions. Our customizations’ real-time reporting capabilities helped manage inventory positions and mitigate any potential risks proactively. This digitally transformational approach resulted in substantial cost savings and time, reduced manual efforts, improved accuracy, and provided timely information. Additionally, the ongoing support from Value Creed ensured the continuous value delivery to the business.

Contact us today to learn more about our digital transformation solutions.

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Performance Challenge

In the routine operations of a leading fuel supplier in North America, significant errors and mismatches in Bill of Lading (BOL) numbers posed a notable challenge, affecting operational efficiency. The BOL numbers outline shipment contents and destinations, these details were often compromised due to manual data entry errors made by truck drivers at delivery sites. These discrepancies included mistakes in BOL numbers, vendor details, and other critical information. With the receipt of hundreds of BOLs daily, totaling 10 to 100 mismatches, cash flow experienced a notable impact. Failure to generate invoices due to Bill of Lading discrepancies posed risks to credit limits, trade restrictions, operational disruptions, regulatory compliance, resource allocation, customer satisfaction, and cost management.

To address these issues, daily manual validation became necessary to maintain the accuracy of BOL information. Recognizing this need, Value Creed introduced automation solutions to identify and rectify BOL data discrepancies, ensuring the seamless integration of accurate and up-to-date information into the system. Through the implementation of automation, businesses could effectively reduce errors, minimize delays in invoice generation, and uphold smooth operations within fuel transportation logistics.

KEY RESULTS

Operational Efficiency

Automated analysis processes boosted operational efficiency by 75%

Data Accuracy

Achieved 95%+ Data accuracy on BOL data

Resource Utilization

60-70% reduction in resource utilization for manual tasks

Code Management

90% accuracy in destination code management

Invoicing Process

Decrease in invoicing cycle time by 80%

Digital Transformation

Our suggested solution is a comprehensive workflow implemented through Power Automate, designed to significantly enhance operational efficiency by optimizing manual processes.

Data Integration and Visualization: Implemented a unified platform to integrate data from various sources such as RightAngle, and other applications to fetch information from various parameters.

Automated Validation and Matching: Developed automated algorithms to validate BOL numbers and other parameters across different systems to identify correct data. Enabled automated mapping of this data that generated simplified results in the desired format.

Streamlined Reporting: Automated generation of reports and summary tables enabled distribution of data throughout the organization to verify and align the data.

Efficient Database Updates: Integrated automated tools to update Bill of Lading (BOL) data in the RightAngle database seamlessly to ensure timely and accurate updates to prevent errors in fuel delivery logistics

Performance Optimization:  Streamlined operations, reducing manual processing time and errors by 70%. Implemented user feedback loop for ongoing enhancements and analytics-driven refinements.

Value Creed Services Mobilized:

Digital Transformation

Digital Transformation

Obtain the most appropriate and useful data for your specific needs! Value Creed offers a range of services to support you during your data transformation journey. With expertise in data integration, reporting, and performance optimization, we assist in ensuring that your data is optimized for analysis, visualization, and validation.

Key Takeaways

Our solution aims to revolutionize the industry by offering a scalable, user-friendly, and highly efficient platform for managing fuel delivery logistics. The solution covered custom solution development, data integration, workflow optimization, data validation and quality assurance, user training and support, and continuous improvement initiatives.

We tailored a Power Automate workflow for seamless data extraction, validation, analysis, and database updates. The solution drastically reduced manual analysis time from 8 hours to 2 hours daily, preventing breaches of credit exposure limits due to Bill of Lading data mismatches. It streamlined operations, minimized errors, and reallocated resources efficiently. Automation and validation mechanisms ensured data accuracy and compliance with fuel tax regulations, mitigating risks of incorrect tax calculations. By automating data validation and synchronization, our solution expedited invoicing, ensuring accuracy, and reducing manual analysis time, ultimately enhancing efficiency.

Contact us today to learn more about our digital transformation solutions.

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Performance Enhancement

A prominent energy midstream company operating in Western Canada, faced the challenge of upgrading their Endur system from an unsupported version v17 to v23, necessitating a thorough assessment to determine the complexity, cost, and feasibility of the upgrade. They needed to categorize the upgrade project into either homogeneous or heterogeneous, assess the total cost of ownership for different Endur versions, review technical aspects such as code, configuration, and dependencies, identify the scope of impact and incongruences between v17 and v23 solutions, and evaluate platform engineering and infrastructure requirements. Additionally, they sought to establish a robust quality assurance framework for testing the upgraded Endur system.

KEY RESULTS

65%

Execution Certainty

Increase in certainty on scope, cost, schedule, and risks.

40%

Cost Reduction

Reduced total cost to deliver based on optimization recommendations

16+

Early Risk Detection

Identified risks due to disparities in critical solutions between v17 and v23 Endur

35%

Cloud Cost Reduction

Reduced costs by leveraging shared tenants, cost optimization measures and FinOps practices

A Systematic Approach to Project Success

Value Creed’s comprehensive Endur Upgrade Advisory program addressed the client’s challenges through a strategic approach, incorporating key insights throughout:

Capability, Process & Implementation Mapping: A thorough assessment of capabilities, processes, and implementation requirements is crucial for effective project planning and decision-making. By developing solution blueprints across business verticals and engaging key stakeholders, Value Creed ensured a thorough understanding of requirements, fostering collaboration and alignment.

Conduct Version Selection Advisory: Careful consideration of Endur version selection based on business needs and risk assessment is paramount for maximizing the value and success of the upgrade. Through meticulous analysis considering risk appetite and solution architecture fitment, Value Creed facilitated strategic Endur version selection, maximizing the value of the upgrade.

Planning of Upgrade Project: Early detection and mitigation of risks are essential for minimizing disruptions and ensuring smooth project execution. Value Creed coordinated with ION, planned capacity, allocated resources, and managed risks, laying a robust foundation for a successful upgrade while ensuring efficient resource utilization.

Organizational Change Management: Identifying key stakeholders and devising effective communication strategies, Value Creed facilitated smooth transition and adoption of the upgraded Endur system, fostering stakeholder engagement and alignment.

Proactive Risk Identification: Early identification of potential pathways and risks was key to minimizing disruptions and ensuring seamless transitions. We identified 16+ risks including API depreciation, custom code conflicts, and cybersecurity vulnerabilities.

Cost Optimization: With our experience in tackling issues and risk patterns in past Endur upgrades, we offered various insights and guidance. This approach not only facilitated optimal resource utilization but also enabled effective budget management, leading to successful project outcomes.

Value Creed Services Mobilized:

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.  

Upgrade Services

Our team is made up of industry-leading CTRM experts who help you model new business requirements to ensure a future-proof setup. We empower you to customize and enhance performance. Our primary focus is to optimize functionality across the board, aligning with market demands through a holistic solution.

Key Takeaways

Value Creed offers unparalleled expertise in upgrades, providing meticulous planning, substantial cost savings, early risk detection, stakeholder engagement, and cloud cost optimization. With a track record of success, we ensure seamless transitions, aligning Endur versions with business needs and mitigating potential disruptions. Our commitment to excellence and client satisfaction makes us the ideal partner for companies seeking efficient, cost-effective, and reliable upgrade solutions.

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Performance Enhancement

A European Power Trading Firm wanted to establish a US business desk. The client used an ETRM system domestically and a homegrown system for their ISO transactions however faced a notable challenge due to the lack of standardization. Users resorted to manual database updates domestically which led to inefficiencies and a heavy reliance on manual ways of data consolidation and system operations. The absence of automation added to these issues, necessitating a comprehensive solution to streamline processes.

ANTICIPATED KEY RESULTS

$2 Million

Resource Cost Savings

Implementation of up to 7 products

500

Hours Saved

Implementation Effort Behind Each Product

20%

Time Savings

Daily Operations and Reconciliation

Software Selection

To optimize and enhance operations; we performed a comprehensive software evaluation. We proposed a dual-system approach to have – an ISO Bid to Bill solution for transactions with ISOs and an ETRM system to handle Exchange, Bilateral, and Environmental (Non-ISO) trades. The following features our process for recommending the solution.

Value Creed Services Mobilized:

Software Selection

Our comprehensive Software Selection process ensures a complete study of the business operations. Workshops help us to understand the key requirements of business operations to design a process map and conduct a gap analysis. With industry-experienced team members, we understand future business needs, playing a vital role in software selection services.

Key Takeaways

We advised upgrading their current ETRM system for managing non-ISO transactions and implementing an ISO Bid to Bill solution for transactions with ISOs. This approach is tailored to provide the client with an efficient trading infrastructure that meets their specific requirements.

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Performance Enhancement

A leading global trading firm faced a significant challenge integrating trades from diverse external sources into their Endur ETRM system. With multiple ETRMs catering to different commodities, the lack of a standardized validation process led to errors, delays, and increased operational overheads. Manual validation methods were time-consuming and prone to inaccuracies, posing risks to the integrity of trade data and regulatory compliance.

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 Systematic Approach to Project Success

Drawing upon our extensive expertise in ETRM systems and technology, we architected & developed a middleware layer that served as a data layer & pipeline between external trade sources and ETRM systems. Our solution incorporated the following critical components:

Centralized Validation Tier: By introducing a common validation tier for all ETRMs, our solution streamlines the validation process. Trades from external sources undergo validation before entering respective ETRMs, eliminating the need for multiple validation methods and reducing redundancy in the workflow.

Data Standardization: The middleware layer handles various data formats such as XML, JSON, and FIX, converting them into a standardized XML format. This standardization ensures uniformity in data processing and facilitates seamless integration with the validation tier.

Real-time Error Management: Our solution incorporates a dashboard within the validation framework, providing traders with real-time visibility into all trades entering the system. Any errored or misaligned trades are promptly flagged, allowing traders to review and rectify discrepancies efficiently. This proactive approach minimizes the risk of erroneous trades entering the ETRM systems.

Enhanced Trade Modeling: Through enhancements to the Endur data model and GUI screens using OpenComponent library extensions, our solution enables the modeling of complex trade structures such as multi-commodity trades, multi-parcel modules, and multileg trades in Endur. This capability ensures that trades from various external sources are interfaced into Endur without any errors or missing data, further optimizing the trading process.

Reduction of Reporting Errors: By pre-validating trade data before it enters the ETRM systems, our solution significantly reduces reporting errors, including those related to Profit and Loss (PnL) calculations and position reporting. This proactive validation approach minimizes manual work and reprocessing efforts, which would have been necessary to rectify incorrect trades at later stages in the trade lifecycle.

Audit Trail Enablement: Our solution provides comprehensive audit trails, capturing all trade validation activities and changes made by traders. These audit trails not only facilitate regulatory compliance but also support reconciliation efforts, ensuring transparency and accuracy in trade data management.

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.

DevOps

Value Creed helps organizations integrate DevOps across CTRM and manage the cultural shift that perpetually feeds on itself to deliver continuous improvement and proactive identification and creation of desirable product features.

Key Takeaways

By centralizing validation, standardizing data formats, implementing real-time error management, enabling enhanced trade modeling, and reducing reporting errors, our solution empowers traders to operate with confidence, knowing that their data is accurate, processes are streamlined, and regulatory compliance is assured. Partner with Value Creed to navigate the complexities of the energy trading landscape with agility and precision, driving business growth and maintaining a competitive edge in the market.

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Customize & improve business processes with Value Creed’s Implementation Services