Business / Case Studies

Manufacturing & Import

Eliminating FX Margins on a Multi-Currency Supply Chain

A premium furniture importer was losing thousands to bank FX spreads and unpredictable rates across an 8-week supply chain. We locked rates at order placement and cut the spread to near mid-market.

Client

A UK-based premium furniture importer

Solution

International Supplier Payments + Forward Contracts

Timeframe

12 months

Client Scenario

The situation.

The company sourced container-loads of goods from Vietnam, Italy, and Portugal. Their bank charged a 3.2% margin on the exchange rate and the rate drifted between placing an order and settling the invoice 8 weeks later, making landed cost impossible to forecast.

The Challenge

  • A 3.2% bank margin on every supplier transfer, a direct hit to gross profit
  • Exchange-rate drift over an 8-week lead time made landed cost unpredictable
  • Multiple supplier corridors (VND, EUR) managed across separate banking touchpoints

How We Helped

Our approach.

1

Forward contracts at order placement

We locked the rate the moment each purchase order was raised, fixing the GBP cost from day one across the 8-week lead time.

2

Local-currency settlement

Suppliers received exactly the quoted amount in their own currency, with no surprise deductions from a bank spread.

3

Dedicated dealer coordination

A single specialist coordinated batched supplier payments across VND, EUR, and a secondary Portuguese corridor.

The Results

What changed
for the client.

£47,000

saved on FX costs in the first 12 months

0.5%

rate within true mid-market, down from 3.2% bank margin

Near-zero

landed cost variance across the lead time

Key Outcomes

  • 3.2% bank spread eliminated, replaced with a rate within 0.5% of mid-market
  • Landed cost variance reduced to near-zero across an 8-week lead time
  • £1.5m of supplier payments settled with a single coordinated relationship

"For the first time we can quote our customers a landed retail price on the day we place the order, not the day the invoice lands. That certainty has changed how we buy."

Operations Director

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