Southwest Airlines recently announced a new initiative to improve fuel efficiency within its fleet. Allegro Development Corp. and Southwest Airlines have launched the newest generation of energy trading and risk management (ETRM) software, Allegro Horizon, to improve fuel optimization, supply chain efficiencies and real-time inventory management of its jet fuel business. Additionally, Southwest will be evaluating Allegro Mobile, Allegro’s iOS and Android compatible CTRM mobile application, which provides end users with 24-hour remote access to real-time data, workflow approval and position visibility.
With more than 57,000 employees who serve more than 120 million customers a year, Southwest is the United States’ largest domestic air carrier, according to the US Department of Transportation. In 2014, Southwest began offering international service and now flies to 10 countries across Latin America and the Caribbean.
Since 2008, Southwest Airlines has worked with Allegro’s ETRM software solutions to manage its hedging program, which has been key to the company’s mitigation of fuel price risk. Today, Southwest Airlines’ fuel procurement team is using Horizon to manage an average of 4,000 fuel related logistics movements per day. Additionally, the airline is utilizing the software to manage inventory at 120 different locations and fuel purchasing at an additional 50 locations.
“The complexity of Southwest Airlines’ fuel procurement and distribution activity across our entire fleet requires accuracy, efficiency, and state-of-the-art technology that Allegro’s fuel management software provides,” said Bill Tiffany, Vice President, Supply Chain Management, Southwest Airlines. “Upgrading to Allegro Horizon was the next natural step in our long-term plan to automate routine tasks while gaining greater transparency to fuel supply and inventory information, as well as decision support on our fuel spend. We are excited to continue working with Allegro’s team of experts to streamline our jet fuel business management.”
Built to host production in the cloud or on-site, Allegro Horizon is a commodity management solution with flexible architecture that promotes scalability and improved performance. With real-time portfolio insight, Horizon is a critical tool for commodity businesses looking to manage risk, streamline business processes, and identify market growth opportunities.