Hedge Insite is an automated risk management tool to organize and track all buy/sell commitments for petroleum marketers, especially in the home heating business.
This web-based product (SaaS) assists management, with a centralized easy-to-access location, to track all buy/sell positions on a month-to-month basis and to assure balances are in keeping with corporate expectations. It also enables management to test (through a “stressing" calculator) the impact changing markets (up or down) would have on the company's gross margins relating to each line of business (pre-buys, contracts, rack, commercial, wholesale, etc.).
Daily results can be compared to budgets for everyday decision making-eliminating guess work.
Disciplined use of this tool should improve the likelihood of achieving target margins and reduce the risks inherent to the commodity influences in the petroleum market.
• Forecasting (setting plans and proactively tracking results)
• Progress reporting (removing the guesswork associated with unfulfilled sales/purchase commitments)
• Testing P&L expectations (enabling you to steer a course to your desired goal)
• Hedging strategies (defining and tracking all commitments as markets change)
• Risk management (maintaining within your tolerance limits)
• Auditing purchase and sale activities (empowering you to identify what’s successful and what needs change)