With just 90 days to unwind a third-party fuel marketing arrangement and launch a fully operational commodity trading business from the ground up, the margin for error was zero. Optimus delivered a structured, rapid-deployment solution spanning organizational design, leadership hiring, technology selection, risk and compliance frameworks, and end-to-end process documentation, enabling the client to hit their target timeline, capture their full margin, and build a foundation designed to scale.
Client
Energy Trading & Retail
Our client faced a critical transition: taking fuel marketing in-house after relying on a third-party marketer. With their existing agreement expiring, they had just 90 days to unwind the arrangement and launch a fully operational marketing business.
Challenge
Starting from scratch meant addressing every component of a new commodity business line:
- Establishing a legal entity and banking accounts.
- Designing the organizational structure and hiring key leaders.
- Developing credit and risk policies.
- Executing counterparty contracts (e.g., NAESB/ISDA).
- Selecting and enabling technology.
- Implementing reporting, governance, and compliance frameworks.
The stakes were high. Without a clear roadmap, the client risked delayed market entry, financial exposure, continued reliance upon prior third-party at a higher rate and compliance gaps.
Solution
Optimus partnered with the client to deliver a rapid, cost-effective solution. Leveraging our deep industry expertise and proven frameworks, we did the following:
- Strategy & Roadmap: Defined the “bare minimum” viable path to get operational quickly, then mapped a phased expansion plan.
- Organizational Design: Built an organizational chart, realigned talent, and guided leadership hires for trading and marketing roles.
- Systems & Tools: Conducted demos and evaluations of ETRM options; delivered an Excel-based interim solution for P&L, settlements, and logistics tracking to avoid upfront system costs.
- Controls & Compliance: Implemented segregation of duties and internal controls to safeguard operations without requiring immediate headcount expansion.
- Processes & Policies: Documented end-to-end transaction lifecycles, created a daily reporting framework, and facilitated a two-day “day-in-the-life” workshop to align commercial through cash processes.
- Knowledge Transfer: Delivered clear documentation and a 30/60/90-day action plan to sustain progress beyond the initial go-live.
Result
Within 90 days, the client successfully stood up their new commodity business line. Key outcomes included:
- Accelerated Market Entry: Achieved operations within the target timeline, avoiding costly reliance on the outgoing vendor.
- Cost Savings: Deployed an interim Excel solution and optimized existing talent, reducing the need for immediate large-scale technology investments.
- Risk Management: Implemented controls and compliance frameworks that balanced speed with accountability.
- Sustainable Foundation: Delivered a documented roadmap, governance structure, and training to enable future scaling.
- Strategic Independence: By internalizing their trading and marketing, the client captured their full margin and safeguarded sensitive data previously shared with third parties.
Benefits
System Upgrade Readiness
Developed process-informed testing scripts for RightAngle upgrade scenarios.
Standardization
Developed process-informed testing scripts for RightAngle upgrade scenarios.
