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VAKT Claims Some Serious Business Benefits for its Users

Now that VAKT has established its products through broader adoption, it has been able to establish some ROI’s and made these the focus of its new web presence. As its website states, “VAKT was formed in 2018 by a group of oil majors, traders, and trade finance providers. Our founding partners recognised a problem that required collective action: the physical post trade process was reliant on manual, complex, repetitive and therefore error-prone processes. By coming together and conducting their post trade work on a blockchain-enabled platform, they saw that these problems could be solved, and that they could better protect the value of their trades.”

For example, vSure helps to eliminate paper contracts and utilize simple digital confirmations and affirmations of oil trades in the European barge and vessels market. VAKT is aiming to extend its use into other markets like the US Pipeline and global vessels markets via a series of Proof of Concepts programs with existing users and fully expects to transform these other markets as well, Dale Becker recently told me.

Current users of vSure are experiencing some serious business benefits. Error elimination is one benefit that VAKT values at $4.07 million per $100 billion in turnover, for example. It also reduces 20 minutes of time per saved spot contract, generates $5.5 million in average annual savings and facilitates accurate hedging, it says. “vLogistics reduces operational cost and effort by at least 30% due to it’s live connection between ETRMs, terminal’s and inspector’s systems, facilitating the flow of digital communications. Smart nominations and advanced AI tools across all your counterparties both on and off platform,” is another ROI that VAKT has identified through use of its vLogistics product.

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As Dale states, “the oil industry, known for its complexity and scale, is primed for a digital transformation—particularly in contract management. In a world where multi-party paper agreements per trade and dynamic market conditions create significant friction, joining the VAKT ecosystem where compliance, negotiation, and execution all occur seamlessly in a fully digital and secure environment underpinned by existing GT&C’s and side-letter or MTA for legal efficiency, helps to generate significant benefits for users.”

Focusing on the ROI behind its products and solutions is a solid way for VAKT to generate interest in its offerings and yet we see this done so little in the commodities technology industry generally. The issue, of course, is that it is simply hard to do, and is ROI is often specific to user companies and how they utilize the solution. Despite this, VAKT has a group of committed users companies that are not only dedicated to simplifying, optimizing, and digitizing business processes, but are also motivated to help calculate the benefits of such an approach.

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