The waste management industry produces energy from waste. The steam is often sold to industrial companies in the direct neighborhood, whereas the electricity can also be sold on the power market. The contract module can capture any steam and/or electricity contract even the most complex steam pricing formulas. This enables waste companies to calculate the best sales contract given a variety of potential price indexations. Waste risk management is key to survive in this competitive market with over capacity.
Business improvement across categories – KYOS portfolio & risk management system
Multiple categories (waste, energy) profit from automated commodity market price analytical functions. Some of our clients use the KYOS portfolio & risk management system to manage a portfolio of steam and power contracts. Each user is able to define a category specific portfolio of commodities. No more use of spreadsheets as all category buyers use the same integrated portfolio & risk management system. The CFO has an up-to-date helicopter overview across all categories, securing compliance & consistency. Users save valuable time by automated sharing analysis across the organisation.
Cost savings – KYOS portfolio & risk management system
Your bottom line can be affected heavily by rising costs of commodities. Suppliers of steam often link steam prices to power or to natural gas. In the KYOS portfolio & risk management system users are able to compare several commodity price formulas in a split second. Calcutating the best applicable formula takes less time then Excel based analysis. Resulting in significant lower costs with less time spend.
Managing commodity risks is inevitable for waste companies, accurate and up-to-date information is crucial to stay ahead of competitors. Managing this crucial information in Excel has proven to be a pitfall for many companies in terms of costs, mistakes, hidden risks and potential fraud. ERP systems like SAP look backwards in stead off to the future and cannot perform the required risk management calculations. The KYOS portfolio & risk management system captures years of experience in managing risks of steam contracts and market price volatility leading to effective hedging strategies.
Managing cashflow variance – KYOS portfolio & risk management system
In the portfolio & risk management system you can store commodity budgets, steam production and contracts. The automated market price analytics are combined with your physical positions. It will provide you with clear insight in the current cashflow and potential cashflow variance versus budget expectations.
You will have a better insight in contracted and/or open positions, cashflows and the associated risks. This is a clear added value for procurement, sales, finance and treasury. KYOS has a proven track record with waste companies specifically on waste risk management.
Fixed or floating prices – Waste risk management
As the waste management market is highly competitive managing the risks is a key task. Steam and electricity contracts are often sold against floating prices and hedging with financial swaps is often used. Companies needs to find a balance between security of income and the risks of rapidly changing market prices The KYOS portfolio & risk management system will help you to find your “risk and reward” optimum by simulating multiple cashflow variances. It will provide you with clear insight in the potential cashflows given any variance between fixed and floating prices.
Better managing your cashflow variances will lower your required working capital.
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