10 December 2020
Benchmarking is a powerful tool for helping companies ensure they are not falling behind key competitors.
Clearlynx, as part of its ClearIntel consultancy, can conduct a quick, simple but effective examination of your current team performance capabilities and also assist in setting clear and meaningful targets for improvements.
The percentage of owners who benchmark their TCE and freight performance to competitors is great compared to the small percentage who said they had a good understanding of where their organizations stood in regard to their competitors' price and bunker procurement functions.
This lack of knowledge can be a significant impediment for a company pursuing high performance.
Benchmarking to market Indexes like Platts, ICE, ClearLynx, etc., is only half the exercise as market indexes can vary on any given day, are not always available in certain ports and can be poorly correlated.
Benchmarking is essential as organizations operating large teams in several countries or via pool partners can compare costs and performance metrics across many different entities. Benchmarking helps to identify the most critical gaps between an organization's current bunker spend and where it wants to be.
It enables leaders to gauge where their organization leads, lags, or operates at par with the market or their peers and evaluate the skill set of their procurement teams who must manage the responsibilities below to balance price and value over a continuum of purchases and time.
We have performed a statistical Standard Deviation calculation via a Box and Whiskers Visual to indicate peer performance on specific days in October, November, & December for Singapore VLSFO.
The takeaway is that there is 2-3% spread amongst the very best buyers and the market rise from Oct to Dec of $35 mt or 10% also causes price volatility, a risk to budget and bottom line.
We feel procurement is a combo of Art, Science and Technology and the three make for the best performance.
We will continue to report our findings. Contact us at email@example.com for more information.VIEW ALL MARKET INSIGHT ARTICLES
Through our bunker procurement, pricing and analytics platform, we have unique visibility of actual and indicative pricing, product requirements, availability and completed transactions across the market. By aggregating this anonymized data, coupled with over a decade of historical data, we can provide insight into market activity, current trends and commentary on potential future outcomes.
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