Pricing, Supply & Risk Management

Ride out price volatility and reduce fuel costs

Volatility of oil and jet fuel prices have considerable impacts on business margins. At AFSI, we use our expertise to help your business manage this unpredictability through long term pricing risk management agreements enabling greater certainty and better planning.

Price Risk Management

  • Market price volatility
  • Risk Mapping: Exposure to price risks using VAR calculation
  • Basis risk analysis
  • Derivative instruments
  • Risk Policy and Procedures Manual
  • Managing Risks: Set up an organization with proper controls to manage price risks
  • Risk Benchmarking: Hedge ratios, horizon, and derivative instruments
  • Dynamic Hedging: Hedging on a rolling basis
  • Develop and implement hedging strategies
  • Hedge Accounting: Mark-to-market analysis
  • Training in Risk Management

Leverage supplier competition to secure competitive margins and gain a competitive edge

Fuel Supply & Pricing

  • Fuel requirement and budgeting using futures market price data and scenario planning
  • Supply chain analysis and market forces
  • Market intelligence and competitive rivalry
  • Self-supply strategy, Joint Purchasing Programs, and Package deals
  • Price Structures: Formula pricing against Market price
  • Bid documents and tender principles
  • Vendor due diligence
  • Manage tender process: Launch tender, bid analysis, negotiations, and Contract award
  • Contract terms and Service Level Agreements
  • Vendor Performance and Contract Management