Transitions

From volume to value

Client profile

  • Mid-tier base metals producer

  • Exports over 80%

Challenges

  • Shrinking domestic market

  • Falling profitability

  • No access to global commodity and financial markets

Solutions

  • Diversify international sales

  • Develop trade finance and customer services

  • Increase added value and sales margins

First year investments

  • Defined project goals, milestones, and deliverables

  • Researched international market

  • Set up a legal structure for export finance, international sales, and customer services

  • Organized international accounting, financial reporting, transfer pricing, controlling functions and processes in accordance with all stakeholders’ requirements

  • Upgraded corporate marketing materials

  • Developed new customer accounts in most profitable markets

  • Structured credit facilities and reverse factoring arrangements with international banks

  • Organized permanent stocks in principal foreign markets

  • Secured international cargo, political, and credit insurance policies

  • Organized just-in-time deliveries worldwide

  • Launched direct sales to end-users in principal foreign markets

  • Opened trading accounts with LME ring dealing members

  • Developed hedging strategies with LME futures and options

Second year results

  • Switched international sales from long-term offtake agreements to a mix of long-term, midterm, and spot contracts with end-users and traders

  • Increased sales to end-users from 0% to 80% of all exports

  • Improved sales margins by 3% net of customer acquisition incentives

  • Grew annual profit by $3.5m

  • Upgraded delivery terms from FCA/FOB to CIF/DAP/DDP

  • Shifted payment terms from prepayment/CAD to insured open account

  • Reduced market volatility through price hedging

  • Upgraded staff competencies through on-the-job training

  • Transferred daily activities to permanent staff

Going forward

Will ensure troubleshooting and further progress as required

INTERTRADE DYNAMICS SA

Z.A. La Piece 1

Rolle 1180

Switzerland

T: +41-21-544-16-20

F: +41-21-805-05-00

E: info@intertradedynamics.com

Skype: intertradedynamics

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