Integrated Oil Trading System to Reduce Risk and Increase Efficiency
The Client
The client is a large oil trading and supply company trading in excess of over a million barrels of crude oil and refined products every day. The client’s international crude oil trading unit is a prime source of revenue.
Business Need
The client used a set of disparate applications and tools across departments that were resulting in inefficiencies in the business processes due to duplication of activities
- The Risk and Credit exposure was high due to lack of real-time data
- The client was also spending significant effort in reconciliation and conversion due to incompatible data formats
Challenge
Based on downstream application requirements, the impact on upstream modules had to be managed. Due to the big bang approach opted by the client and aggressive timelines, parallel implementation tracks had to be maintained. This resulted in complexities in management of design consistency across modules.
Our Solution
- Infosys developed an end-to-end trading system for physical oil & product trading, derivative trading and risk management consisting of Forwards, Swaps, CFDs, Futures, OTC and exchange traded options for Hedging as well as Speculative trading
- The system integrated the front office (Deal Capture, Contract Management), mid-office (Credit control, Risk Management) and Back office (Operations, inventory management, Shipping, A/R, A/P, Invoicing and P&L reporting)
- The Infosys' program managed the development of the entire solution. Infosys leveraged Global Delivery Model (GDM) for the effective execution of the engagement from business analysis to deployment
Benefits
- Commodity traders got a flexible solution with real-time decision support and operations control
- The solution provided consistent reporting and risk management