DTN Exchange Expands Transaction Types To Help Fuel Sellers Capture Broader Range of Business
Forward, strip and curve transactions and class of trade pricing gives refined fuel sellers competitive advantage by increasing business efficiency, helping managing market risk and offering greater access to product
Enhancements to the DTN Exchange®-a real-time fuel order management
system where buyers and sellers conduct fuel transactions based on
current market prices-include the ability to conduct forward, strip and
curve transactions. These new transaction types are important mechanisms
to better manage market, inventory and price risk in today's volatile
marketplace.
CLASS OF TRADE PRICING
Fuel sellers will be able to use class of trade pricing to manage
margins and supply availability in real-time across different customer
bases. Class of trade pricing is an effective tool to boost sales,
protect inventories for specific customer groups, and serve customers on
a priority basis.
A terminal-specific short-term contract is created when buyers use the
DTN Exchange to order product. Customer and inventory management is
improved because sellers can reserve product allocations for specific
customers ensuring inventory is in place to support top customers'
needs.
Sellers can easily set up and manage pricing and inventory across all
terminals. Using DTN Exchange, sellers input proprietary price formulas
with built-in margins which can either tie to real-time tick averages
from NYMEX, or remain static. The ability to update pricing within
seconds for a single, multiple or all offers gives sellers full control
to instantly implement strategic price changes to adjust to local market
conditions, or basis changes.
FORWARDS
Sellers will be able to establish forward pricing up to 12 months out,
adding in a built-in profit margin which remains constant even as the
market moves up and down. Buyers get on-demand pricing - eliminating
the need to play phone tag with suppliers in order to lock in product
volume and delivery period to meet business needs. Both parties get
instant, electronic purchase confirmations from the DTN Exchange,
including all the details needed for the back-office.
"These significant new upgrades to the DTN Exchange will help fuel
sellers and buyers manage their business more effectively," said Robert
Gordon, chief executive officer, DTN. "Fuel sellers getting started on
the DTN Exchange can access trained buyers across the country at a lower
cost of new customer acquisition."
A proven e-commerce platform, buyers and sellers have been executing
transactions on the DTN Exchange for over five years. DTN Exchange is
the downstream's only independent fuel buying and selling exchange;
assisting sellers with a range of tasks from determining a selling
price, to managing price variables across multiple terminals. A live,
open sales channel with an instantaneous stream of two-way transaction
data, the DTN Exchange automates contracts as well as billing business
processes saving both time and money.
Click here to view the recent web conference on the DTN Exchange
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