Case Study in Oil Bunkering Industry

Profile United Bunkering & Trading (HK) establishment in the oil bunkering industry has been no surprise, considering the immeasurable potential that Hong Kong and other Asian markets possess. Registered with the Hong Kong Marine Department as a physical supplier of marine fuel, UBT (HK) supplies a comprehensive range and grades of fuel, efficiently handling projects ranging from standard deliveries in port to de-bunkering
Customer: United Bunkering & Trading (HK) Website: www.ubtasia.com Country: Hong Kong Industry: Marine - Oil Bunkering Partner: Asterisk Computer (FE) Pte Ltd

services. With a strong presence in Singapore, China, Hong Kong, Taipei and Indonesia, UBT (HK) also offers risk management services, widening its already powerful network of customers throughout Asia.

Challenges
Costumer Profile

United Bunkering & Trading (HK) offers oil bunkering services, all over Asia; from Singapore, China, Hong Kong, Taipei and Indonesia, providing risk management services as well, ensuring the requirements of customers are completely met and expectations are exceeded.

Low margin trade Due to the very demanding and competitive nature of the oil bunkering business, increasing profitability was their top and most sensitive issue. Acquiring adequate gross profit margin was a challenge as well as efficiently maintaining and even exceeding the profit-related expectations. Meticulous and vigilant credit control should be handled and a speedier nomination process was also required, which UBT (HK)

Software and Services Microsoft Dynamics NAVI - Marine Oil Bunkering Solutions

needed some improvements before. A larger amount of cash flow should also have been ideally generated. Lack of credit control Measuring of oil prices reached a complicated turn as price criteria was then limited and rigid. Delivery costs for each trade was insufficient and a systematic method of handling approval costs was missing then. A proficient method of tracking overdue balances from customers was missing. The absence of a credit evaluation method makes it even harder for the concerned department to control credit process. Neglected activities

For more information about our Microsoft Dynamics products & services, please visit our website at: www.asterisk.com.sg

Monitoring of trader and broker activities was non-existent then, making it a complicated act to store a record of their performance for further analysis and evaluation. A fastidious method of recording data of loaded stocks and tracking of sales volume

was not available then. Comprehensively viewing the recorded information such as the completed and delivered stocks and related items was also hard then. Dealing with low margin concerns, lack of a credit evaluation system and an absence in effectively monitoring related activities, the department and people of UBT (HK) had to work extra hard to finish their delegated tasks and activities.

Delivery costs computations are also enabled and even approval costs are made easier, basing it instead on payment terms. More importantly, a credit evaluation process is added and even a system that tracks overdue balances from customers is now available, easing up the work flow of the UBT (HK) staff. Efficient Activity Tracking Not only can the UBT (HK) staff track trader and broker activities, they can also acquire a more extensive trader performance

Solution An ERP system specifically tailored to the oil bunkering industry became a requirement, not only to have a standardized method but also to ease up the burden of everyday work and to speed up actions and resolutions.

report, enabling them to compute in a much more comprehensive way the profitability rates, dips and advancements. Data such as loaded/ completed/ delivered stocks are also provided in a comprehensive overview and tracking of sales volume inquiry by a customer is now generally easier. Add-On System: Preventive Maintenance Solution

Microsoft Dynamics NAVI-Marine Solutions became the top ERP system choice and Asterisk Computer (FE) Pte Ltd became the selected vendor to implement and deploy it. Having 20 years in the business and with a committed and highly-experienced team of consultants (averaging 10 years of experience), Asterisk Computer was the topmost trusted vendor by UBT (HK) to implement a marine-industry solution. Benefits Substantial cash flow UBT (HK) teams work challenges has been significantly lowered, UBT (HK) readily embraced certain, advantageous methods such as credit evaluation processing and related activityadvancements, such as a quicker nomination processing system, which is greatly helped by monitoring of deliveries and the availability of fixed prices. Tracking and monitoring of trader performance has also produced positive margin results. Control Credit Limit A more flexible means of measuring fuel oil pricing is now available, with price criteria such as FIXED, MOPS (Means of Platts) and Bunker Wire, readily generating within the system. Delivery costs computations are also enabled and even with paper-based process effectively arranged and replaced with automated ones. Not only are they enjoying a stream of system advancements and easy to use functionalities, overhead expenses are also greatly reduced, with revenues hitting the ceiling. Trails and updates of customer credit limitations, overdue balances and advanced payments, all can now be easily accessed for careful deliberation and analysation, empowering them to act quickly and accordingly. With MS Dynamics NAVI-Marine Solutions, UBT (HK) expansion plans are unstoppable, providing them the necessary means to intently focus on things that matter such as revenue growth and delivering the best possible service they can give to customers. Maintenance of vessel and identifying parts needed for repair and replacement was also added, reducing the worry of the UBT (HK) staff for a maintenance system. Even price comparisons for the best price of a related shipping piece are also available.

No more complex paper-based work process, no more ineffective monitoring of trader and broker activities. Response rate to customers and suppliers became compellingly higher, credit limits are greatly controlled, profit generating activities are carefully monitored and a preventive maintenance solution is even provided, all with the help of MS Dynamics NAVI-Marine Solutions.

-ing scheduling of sales orders for on the dot deliveries can also be done. Cost of sale report for profitability analysis is also provided. Meticulous Regulations Maximize the blending of fuels and recording the blends. You can also record fuel inflows/outflows to tanks and vessels. Monitoring & tracking of fuel grade and quantity at each location is also included.

Product Overview MS Dynamics NAVI-Marine Solutions as a Oil Bunkering Solution allows you the following functions:

Costing & Analysis Provides cost of sale report for profitability analysis. Enables aging analysis for Accounts Receivable and Accounts Payable. Analyzation of cash flows can be based on aging analysis.

Work Flow Automation Processes such as email, fax and telex interaction with customer, vendor and brokers are all electronically done and easily automated, making it easy to track invoices, cash receipts, capturing of various claims, unattended inquiries, etc. Even an alert system is provided to give warnings for a customers exceeding credit limit. Enhanced Tracking & Monitoring Activities Enables tracking of trader and broker performance even customer inquiries, quotes and sales confirmations. Added & Improved Systems Spot and term contracts for purchasing of different grades of fuel from vendors are available. Consolidating vouchers against purchases and costs is also included, easily adjusting vouchers and track payments. Posting/Interfacing with General Ledger is available as well. Setting up and modify-

Risk & Trading Management Enables grouping of physical/paper deals into strategies, for further evaluation including but not limited to inventory at risk. Automate capturing of various secondary costs for each and every bulk deal. Efficiently assists with bulk fuel purchase/sales on spot or term contract. Generates market prices and quickly evaluates the mark to market and profitability of the deals including the secondary costs. Intercompany Organization Availability of varied inventory costing methods for different inventory tracking is provided. Specifying requirements for invoicing individual fuels before blending rather than the final delivered product is included, as well as customizing languages to handle transactions from different locations. Multiple and varied currencies are available as well as consolidation reporting.

Support and Analysis A comprehensive sales statistics for profitability report is readily available, ensuring that all necessary data can be easily generated and shown to the management and even staff members. Bunker Position Report for scheduling is also included, as well as the method of reporting lost inquiry for lost business analysis. The system also enables aging analysis of AR and AP vendor wise. A procurement performance report and term contract Vs spot prices Vs Bunker wire prices is also available and viewing of inventory based on quantity and price can be also used. Multi-level Claims Analysis for delivery feedback, blending Optimizer for calculating optimum blending volumes and an indication for value at Risk and barrels at risk can also be used.

For more information about our products and services, visit our website at: www.asterisk.com.sg or contact us at the following: 80 Genting Lane, #09-10 Ruby Industrial Complex Singapore 349565 Sales Enquiry email : sales@asterisk.com.sg Tel : +65 6748 8727 Fax : +65 6744 9220 Support Helpdesk Tel: +65 6744 5527 email : support@asterisk.com.sg