A national coal company that regularly participates in multi-party transactions needed a comprehensive solution to address factors such as product quality, transportation, pricing and regional sourcing which were critical to their operations. With Allegro, the company can manage the complete contract and transaction lifecycle and improve its risk management strategies to optimize production decisions and contract profitability.
Additionally, due to the illiquidity of the coal market, the effectiveness of risk management strategies can have a substantial impact. Allegro’s trading and risk management solutions were implemented to provide the company with a fully integrated solution that spans the value chain from trade capture to invoicing and mitigates their exposure to risk. The comprehensive risk solution also allows the company to act as its own credit entity, fully equipped with functionality to conduct business with a large number of counter parties, working within pre-determined levels of risk