About the Company 

NET Offset is an AI-powered optimization software that enhances profits and reduces risks in physical commodity trading. Physical commodity traders buy raw materials and sell them at a profit as commodities, unlocking arbitrage opportunities through transportation, storage, and processing. However, traders lack a view of how their supply chains could be structured to capture synergies and unlock more profitable arbitrage opportunities. NET Offset’s optimization software inputs all possible supply and demand, then outputs a logistics strategy across multiple selected trades to maximize profits. This results in an estimated 5% increase in profits, while cutting GHG emissions by 15% through optimized logistics.

About the Solution

NET Offset employs an optimization model to determine the optimal transportation, processing and storage strategy to fulfill possible trades. Traders benefit by having unprecedented insights into the transactional costs embedded in each arbitrage opportunity. The model selects where to purchase raw materials, when to store them, how best to transport them between markets, where to process them, and when to sell them to industrial buyers, all while ensuring the strategy does not exceed a value-at-risk metric. Since the model captures logistics synergies between fulfilling multiple trades, waste is eliminated from the supply chain, enabling trading firms to simultaneously benefit their bottom line and mitigate climate change.