Fixing a leaky value faucet
A national food and agriculture company with a complicated supply chain of hundreds of partners was selling commodities at sub optimal price points. Analyzing contracts and their impacted terms in a timely manner was challenging due to disparate and disconnected data storage and collection. The organization engaged Inspire11 to overhaul home-grown analytics tools, provide real-time financial market insights, and create sustainable data-based solutions that flexibly scale over time.
From foundation and visualization to a culture of business insights
During the first phase of the engagement, Inspire11 focused on creating a strong data foundation by leveraging Snowflake services to consolidate data into a single point of consumption (i.e., data warehouse). As part of this migration, Inspire11 cleansed and enhanced existing data, building automated data pipelines to refresh the organization’s data from multiple legacy systems.
Consolidating, automating, and cleansing the data was essential to our partner leveling up its analytics. Initially, Inspire11 performed the following activities:
- Centralized the data from over 80 manufacturing sites, internal master data sources, and market/ reference data.
- Developed a centralized platform displaying trade positions by leveraging PowerBI and Snowflake data warehouse.
- Enabled aggregate analysis and drill-down capabilities to real-time contract status.
- Developed tools to visually present ongoing movement and volatility within the market.
The development of analytics capabilities enabled our partner to gain a more in-depth understanding of current market perspectives and positions, while avoiding any blind spots across the organization.
After the initial analytics foundation was established, the Inspire 11 team developed predictive financial models to recommend specific strategies based on historical contracts and pricing decisions. These predictive models include:
- Automated transactions based on agreed-upon business rules and scenarios with high confidence.
- Hedging rules created by running hundreds of thousands of simulations, allowing traders of various experience levels to drive consistent performance.
- A historical benchmark for comparable years and market conditions to augment trader subject matter expertise and to deliver additional value.
- A more holistic view of profitability founded on hundreds of models for commodity-shipping location blended with freight costing data.
- Push notifications to highlight and prioritize high-value opportunities requiring attention and management input.
- Forward-looking predictive analytics tools to forecast trends and long-term market behavior.