Danaos Systems (Cyprus) Ltd - Bunker Dashboard
Information Services

BUNKER DASHBOARD

Danaos and LQM Petroleum Services Inc, one of the largest international marine fuel oil brokers in the world, have jointly developed the Bunker Dashboard software tool that automates the bunkering process.

Controlling fuel costs are one of the single most important contributors to your bottom line. Bunker procurement decisions today have become increasingly complicated for bunker buyers and managers forcing solutions that are non -intuitive, complex and multidimensional. Bunkers and purchasing costs have increased from 5% of revenue to 50-60%. This significant change is a result of the commoditization of bunker fuel, its shrinking percentage in supply from refining and new governmental-driven sulfur constraints.

Strategic Sourcing Management

Information systems help track the impact of every business decision and transaction - but access to this information for ship owners and operators is cumbersome at best, impossible at worst. Unfortunately most purchasers are still handicapped with two dimensional spread sheets which are incapable of handling the complexity of these sourcing requirements.

Key Values

The BunkerDashboard captures and allows:

  • An extensive set of transactional data to be used in reports and gives a comprehensive solution to manage the entire bunker procurement process.

  • Multidimensional analyses allow "drill down" to any combination of vessel, fuel, port, price, supplier and cost center in the organization.

  • Gain visibility of decentralized data trapped in multiple systems and consolidate bunker spending cost categories - fuel/ port call expense related to bunker call, fuel testing, fuel quality, surveying and non conformance claims.

  • Allows real time info with fleet bunker metrics with answers from anywhere in the world.

The Result

A stronger understanding of where you stand and what needs your attention. The BunkerDashboard measures best practice adoption and ensures policy compliance which have been hampered due to interaction of various parties and departments in the bunker planning and optimization chain.

BunkerDashboard Features

  • Customize the program with a user's setting and frequently used trading partners and areas.

  • Manage all open inquiries (RFQs).

  • Manage vessel, port, supplier, agent, lab, claim, and reminder databases.

  • Generate an inquiry (RFQ) to the suppliers in a port via email.

  • Compare the offers received from the suppliers.

  • Generate a stem confirmation between the buyer and the seller with the buyers and sellers' relevant clauses and notifications to interested third parties.

  • Generate stem amendments and cancellations.

  • Manage all closed orders.

  • Initiate, track and settle claims and other non-conformance items.

  • Track order documentation.

  • Import vessel fuel delivery statement

  • Manage fuel test result variances and fuel diet

  • Track accounts payable.

  • Approve payments.

  • Report on business statistics and price performance.

Optimizers

The BunkerDashboard has built-in optimization tools that translates into hard dollars saved on your bunker purchases. The BunkerDashboard optimizers collect data from underlying vessel operations and transactional data and provides a strong foundation for fact based planning at formulation level and review for improvement.

It also highlights key information in the form of tables, graphics and reports and solves the key frustration of doing manual collection and running of data through reports and planning iterations in one place. It also leverages LQM's sourcing experience and deep industry expertise to deliver maximum and sustainable savings.

The degree of savings achieved is dependent on the previous buying style of the user but are grouped into the categories of Internal Efficiencies; Decision Support and Reporting

Internal efficiencies

Time saving on enquiry, fixture, post fixture - studies have show that the time saved can be conservatively estimated at 15 minutes per individual stem - so for 20 stems per week, 5 hours per week can be saved.

Decision support has three elements:

  1. Timing of enquiry, timing of nomination. The ability to follow price tracking within the system imposes a discipline on enquiry planning. This feature is as useful in running the enquiry as it is in tracking performance of the buying process. This is very effective for vessels with voyages about 5 days or greater.

  2. Port arbitrage. The ability to float simultaneous enquiries in three ports for a single requirement and especially when daily volatility is about $2-5/mt as bunkers are now a commodity and prices are influenced by hedge fund (speculators), weather, geopolitical tensions and weekly US Dept of Energy inventory reports' impact on crude price.

  3. The ability to compare "apples with apples" removing the complexity of offers based on different units and different delivery charges and surcharges. Also, for larger volumes (say over 1000 mt) comparison of typical specifications to adjust offers for typical energy content.

Element one can show savings of more than $1 per mt and is the least noticed element of the purchase with many buyers. Element two can be covered without the dashboard, but experience shows that it is often ignored to save time. The savings realized are difficult to quantify but easy to appreciate. Element three will often give savings of $0.25-0.50/mt on the energy issue and prevent good offers from being rejected because their format is more complex of that of a competitor - in US ports often more than $1/mt.

Reporting

The structured and integrated reporting achieves a step change in reporting efficiency and the avoidance of manual data transfer errors. It is almost impossible to quantify for all users but on the basis of time saved and improved accuracy of results the saving should equate to or exceed the savings from the internal efficiency.

The Solution

The BunkerDashboard was designed by shipping professionals for shipping professionals. It is customizable and provides a complete turnkey solution for your bunker purchasing and reporting needs.

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