5 Unavoidable Risks Stressing Out Diesel & Lubricant Traders.

1. Global Politics: The uncertainty of global politics can have a severe impact on the trading of diesel and lubricants. If changes in international trade regulations are not adapted promptly, it could cost commodity traders holding deposits abroad huge losses. However, such risks can be single-handedly mitigated with a well-equipped ERP capable of dynamic changes in real time. 
2. Geographical risks: The extraction of these resources is often under rough environments, and prone to difficult climatic conditions, such as natural calamities. This could result in mining challenges and the possibility of lesser than estimated reserves.
3. Price risks: Further to geographical and climatic risks, traders of diesel and lubricants could end up paying high prices for extraction due to complexities involved. While such projects cannot be seized under short notices, accurate forecasting through advanced analytics is the key solution.
4. Demand and Supply: The uneven nature of production of diesel and lubricants are the prime cause for their dramatic price fluctuations. This together, with economic factors such as inflation, the ongoing pandemic, unemployment could result in supply and demand shocks for traders lacking analytical and technological expertise.  
5. Operational risks: All the above-mentioned risks influence the total cost of operations. For instance, the stringent the regulation, the higher will be the cost drilling. Thus, commodity traders who are under-prepared to trade under such volatile market conditions may suffer tremendous financial losses.

Overall, while these risks are avoidable, they can be effectively coped with through the implementation of an advanced ERP or ERTM solution like Robo-Commodity. To learn more, please do get in touch with us today!