Geographical dispersion of operations and a proliferation of contract types mean biofuels manufacturers face increased complexity in managing inventory and forward commitment of corn. There's more risk of supplier default, and price volatility continues.
OpenLink provides a complete solution for the biofuel manufacturer from the farmer to the ethanol distiller or biodiesel plant, and from the plant to fuel distribution networks. Business processes supported include production management, materials forecasting and commodity procurement to inventory management, logistics, ticketing, grain banking and storage through to position management, hedging, FX risk, accounting, treasury management, reporting and compliance.
This eliminates much of the manual data integration and reconciliation work typically required in managing operations, and the business gets more timely and accurate information for decision making.
“With OpenLink, we have the ability to manage all of our terminal operations to ensure that customers get product when they need it. And, the ability to produce RINs tracking in accounting is a bonus."
– Product Scheduler, Ethanol Trading Company
With OpenLink you capture deals and track movements that impact inventory at each staging point. With real-time visibility over positions and inventory levels across all input commodities and products, at all locations, you can optimize inventory management. The solution also automates freight logistics, streamlining processes and tightening payment controls.
With procurement and finance working from the same system, commodities purchasing and hedging across both input corn and output ethanol can be optimized, and the business gets an up-to-date view across all physical and financial positions at all times. The OpenLink solution also delivers transparency into inventory and forward commitment of corn across multiple manufacturing entities, enabling you to manage raw materials risk more effectively.
The stress testing capabilities of OpenLink are second to none – enabling you to model a huge range of input factors to better understand risk exposures and meet regulatory requirements. OpenLink also analyzes the effectiveness of hedges and will cause the appropriate hedge accounting rules to be invoked and, critically, to be revoked if the hedge is later deemed ineffective – giving you the reassurance that earnings statements are being correctly reported.