Developments such as the Paris Agreement on climate change, increasing electric vehicle use, globalization of natural gas and emergence of renewables are introducing new market dynamics. All of these factors need to be considered for energy trading operations in order to optimize supply chains and manage risk.
Increasingly, energy companies are using prescriptive analytics to integrate the planning of all supply chain components. The results of each option can be viewed all the way to various financial statements, to ensure that the optimization of all business functions in the supply chain have a positive impact on financial reporting. All constraints across the supply chain can be incorporated into the prescriptive analysis.
Prescriptive analytics also can be incorporated into integrated business planning (IBP) to make better decisions, faster and with superior execution from production to finance. IBP reconciles and harmonizes strategy and execution by aligning strategic plans into operational plans and bringing the practical aspects of execution into the creation of strategic plans.
This paper discusses how IBP powered by prescriptive analytics can help trading operations maximize the value of the entire supply chain.