[vc_row][vc_column][vc_column_text]Pricing is one of the most elemental issues in the energy industry. It is indeed challenging to minimize commodity risks when commodity prices gravitate, oil and gas industries are forced to cut back on drilling rigs and exploration. They also need to consider ways to reduce expenditure across the supply chain to set the seal on profitable operations. However, volatility in prices also explains that companies have some insight whether the selling price will cover exploration and other costs. Furthermore, the energy sector has also witnessed remarkable risks related to fraud, waste, and abuse.
Last year, the sector dealt with unforeseeable demands for power due to fluctuations in industrial output and remote working due to COVID-19. As per The Commodity Outlook report, oil prices went down drastically in the beginning stages of COVID-19 and have only partly regained pre-pandemic price levels. Additionally, factors such as geopolitical changes and increasing demand for renewable energy sources lead to variation in price and demand.
As the global economic activities awaited to get back to pre-pandemic levels, companies exposed to energy and other commodities are increasingly challenged by competitive economies, fluctuating markets, and digitalization.
Energy companies are struggling with strained balance sheets, they are searching to adopt strategies and innovative solutions to integrate disparate systems, increase automation, and mitigate risk. Digital solutions and a platform approach to Energy Trading and Risk Management (ETRM) can help identify and respond to minimize commodity risks.
Minimizing commodity risks through digitalization
As the supply chain risks are becoming more complex, advances in big-data management, advanced analytics, machine learning, and artificial intelligence can help diminish these risks. Organizations around the globe, including energy companies, are adopting advanced technologies to detect red flags soon and act early. Given the temp of change, speed is becoming crucial to grow business and protect margins.
A strong ETRM solution can help cut through the complexity, whether your clamant issue involves data management, hedging strategies, or supply chain issues.
Implement cloud-native platform
A cloud platform can provide energy companies navigate quick-moving and unpredictable markets with greater speed, agility and enable improved collaboration with trading partners. Additionally, it can help businesses automate processes, gain better insight from data, and make better decisions for trading and risk, supply chain, and financial management.
For example, the Robo-Commodity platform helps clients get data for better analytics on the basis of in-depth knowledge in commodity trading markets, enabling quick decision making.
Through the years we’ve supported multiple commodity traders optimize their supply chain and overall business efficiency. To learn more our Robo-Commodity, feel free to contact us today.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″ css=”.vc_custom_1569490505427{border: 2px solid #dd9933 !important;}”][vc_column_text]
Get a 30 Minute Free Consultation!
[/vc_column_text][contact-form-7 id=”103″][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row]