As a CFO of a shipping company the pressure to manage costs is an everyday challenge…..
• Not only do fuel prices continue to be volatile making it increasingly difficult to accurately estimate the cost of operations and to predict profitability.
• You are now faced with the challenge of dealing with the costs associated with the global implementation of the 0.5% sulphur fuel cap in 2020.
With estimates from the Organisation for Economic Co-operation and Development (OECD) saying the cost of compliance for the industry could be anything from $5 billion to $30 billion annually, the pressure to streamline costs will intensify.
Faced with such challenges it’s good to know that there is one action as a CFO you can take that will make a difference to your business – the adoption of a bunker fuel procurement and management system.
The implementation of such a solution will bring you significant cost savings, improve cash flow, enable better asset utilisation, help to manage risk and drive efficiencies across your business.
As the CFO of Inatech, my team has worked with some of the world’s largest shipping operators. Through the implementation of Shiptech – our bunker procurement software, they have helped deliver significant results to many operators. These include:
• Fast product payback – normally within 9-10 months of the product’s adoption, so is not dilutive to results in the fiscal year.
• Reduced expense and significant cost savings – this expense saving to the business is achieved through driving efficiencies, more effective management, negotiation, dispute resolution and optimisation in the procurement of Bunkers.
• Improved cash management and cash flow – achieved by a more systematic approach to procurement and by providing the data to improve forecasting.
• Reduced risk and ensured the integrity of compliance – not only to ensure legal compliance but also internally where the system now provides transparency on what is happening and ensures internal procedures are being followed.
• Better utilisation of assets – providing better insight into inventory allows for better management of bunkers during the vessels voyage.
The great thing about this fuel procurement tool is that for a CFO it shines the light on one of the biggest expenses of the business providing clarity, expense management, alerting the CFO to risk and improving cash management.
So if you are looking for a fast and effective way to quickly bring cost benefits to the business; looking for a solution that will help you combat fuel price volatility and offset some of the costs associated with the compliance of the 2020 0.5% global sulphur cap, then Inatech’s cloud-based bunker fuel procurement product – Shiptech is your solution.
Inatech has developed Shiptech – a cloud-based bunker fuel management system specifically designed to ensure ship operators can buy the highest quality of fuel at the lowest price. Our experts are on-hand to help manage your costs of operations in today’s volatile marketplace.