By Kent Landrum
Director, Opportune LLP

Overview

Several major downstream companies have recently embarked upon large-scale digital transformations with anticipated capital spend tallying in the tens to hundreds of millions of dollars. While these initiatives promise significant returns, not all small to midsize refining organizations are prepared to double down on digital and make investments of this magnitude.

On the other hand, there are numerous “no regrets” moves that can be made to start down a path to increased effectiveness and efficiency in key commercial and logistics process areas. Relatively low-risk steps such as these will also lay a foundation in core capability and technology areas that can be leveraged when the time is right to make some bigger, bolder bets.

The following five examples of quick-hit process and technology investments are concentrated in the value-creating commercial and logistics functions that aim to:

  1. Streamline deal entry for high-volume, low-complexity physical trades;
  2. Integrate derivatives transaction processing from order, to confirmation, fill, through allocation and broker reconciliation;
  3. Maximize utilization of electronic trade confirmation services;
  4. Automate market data acquisition; and
  5. Enhance integration with logistics partners

In each case, we’ll explore the short-term benefits that a small, focused, first step can deliver, as well as get a glimpse of how the initial investment sets the stage for more transformational projects in the future.

Download the Full Report  Preparing for Digital Downstream Supply Chain Capabilities_Opportune LLP_09172018

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