How EPAM Empowered a Leading Transportation Company to Mitigate Fuel-Price Risk
Manual to Modern: Transforming Fuel Cost Management
At a glance
CLIENT
Leading Transportation Company
SERVICE
- Strategy
INDUSTRIES
- Travel & Hospitality
- Consumer
- Energy & Resources
A leading transportation company, managing more than $5 billion in annual fuel costs, sought alternatives to the outdated platform and processes used to manage its exposure to fuel cost volatility. EPAM’s team of commodity experts assessed the company’s current-state workflows and technology, identified gaps and provided a roadmap for execution. We delivered strategic recommendations for a transformational initiative that would implement modern process and technology solutions to more effectively manage fuel costs.
STRATEGY AS A BASE
Mitigating Fuel Cost Exposure and Volatility
Companies with significant exposure to fluctuating commodity prices can experience a substantial negative impact on their bottom line when prices move adversely, especially in industries operating with notoriously thin margins. Significant volatility in transportation fuel costs – jet fuel, diesel and gasoline – can negatively impact a company's profit and loss (P&L) statement and share price. Through a combination of market analytics, forecasting and fuel procurement strategies, transportation companies can lock in costs, thereby gaining powerful advantages: reduced commodity price exposure, more stable operating expenses and improved financial predictability.
Our client, a leading transportation company managing over $5 billion in annual fuel costs, struggled with an outdated legacy system, siloed ways of working and manual, repetitive processes. Additionally, the client operated with a lean team responsible for multiple tasks, making it even more critical to optimize workflows and system efficiency. In combination, these outdated capabilities no longer provided the agility and precision needed to effectively manage fuel spending and mitigate market risks.
Our commodities experts were engaged to conduct a comprehensive assessment covering market position, business processes and technology. Key deliverables included evaluating Commodity Trade and Risk Management (CTRM) platform alternatives, providing strategic recommendations and developing a thorough cost-benefit analysis and return-on-investment projection for potential change. Through detailed analysis and actionable guidance, EPAM initiated the client’s transformational program and developed a clear technology roadmap focused on lowering transportation fuel-price exposure and enhancing financial predictability.
$5B+
Annual fuel costs managed
5/40+
Five shortlisted providers from over 40 assessed
8
Top-level business functions evaluated
5
years
Total Cost of Ownership (TCO) analysis conducted
CHALLENGES
Aligning Business Needs with Technology
Large transportation companies require modernized processes and advanced technologies to manage fuel costs efficiently. In our client’s case, legacy tools and the surrounding processes, as well as the operating model, resulted in significant challenges:
- Restricted Scalability: The outdated manual systems lacked the flexibility to handle increasing business complexities and evolving requirements.
- Operational Inefficiencies: An overreliance on manual labor through spreadsheets affected productivity and introduced the risk of human error.
- Limited Alternative Comparisons: Globally, there are over 40 alternative CTRM platform providers. Knowing where to start and what to prioritize in evaluating alternatives is a daunting, time-intensive task. Without expert guidance and a preliminary shortlist of best-match providers, the company was unable to objectively evaluate CTRM software and explore more advanced alternatives within the limited team's capacity.
Project Highlights
Trading & Risk Management Assessment
System & Process Health Check
Software Selection & Business Process Optimization
Actionable Roadmap & Strategic Recommendations
Making It Real
EPAM executed a two-track evaluation strategy that assessed the company’s current tools and processes while benchmarking them against potential CTRM platform alternatives. The approach provided clarity as well as objective and actionable insights for the company’s leadership team.
Track 1: Existing Business Process and Technology Assessment
Track 2: Market Best Practices & Software Evaluation
To enable informed decision-making, EPAM developed a five-year total cost of ownership (TCO) comparison, providing visibility into the financial and operational impacts of upgrading the current system versus migrating to a new alternative CTRM platform.
Key Results
The outcome of EPAM’s dual-track approach empowered the company to make confident, data-driven decisions about mitigating transportation fuel-price exposure and business process optimization.
Rapid launch with minimal disruption:
EPAM’s deep expertise in commodity market practices ensured a rapid project kickoff, with minimal impact on company work schedules.
Parallel workstreams for efficiency:
EPAM’s “in parallel” workstreams allowed a detailed business-process evaluation together with strategic market/technology reviews. This approach maximized efficiency while minimizing disruptions to daily operations.
Actionable business case for change:
The final assessment results, combined with a detailed multi-year budget and five-year TCO analysis, provided the company with a robust business case for change. This comprehensive package empowered the company leadership to embrace and pursue strategic modernization, optimize fuel-spend management practices, minimize fuel cost exposure and confidently enable evolution toward best-in-class operational excellence.
TECH STACK
PARTNER WITH US
Ready to mitigate operational risk exposure and improve organizational resilience? We can help you assess options and build actionable roadmaps for success.