Transitions

From volume to value

Client profile

  • Midsize metals producer

  • Exports 80%

Challenges

  • Adverse market conditions

  • Falling profitability

  • Single export off-taker

Solutions

  • Diversify international sales

  • Enhance value proposition

  • Leverage financial markets

Actions

  • Defined project goals, milestones, deliverables

  • Researched international market for most profitable segments

  • Set up a legal structure¬†for global operations (sales, finance, logistics, customer service)

  • Enhanced corporate marketing to customers, lenders, and other stakeholders

  • Designed and implemented group accounting, reporting, controlling, transfer pricing policies and systems

  • Qualified as Approved Supplier to major EU and US customers

  • Arranged credit facilities and reverse factoring with international banks

  • Organized permanent stocks and JIT deliveries in target markets

  • Upgraded IT systems to new operational and security requirements across ERP, CRM, BPM workstreams

  • Secured international cargo and credit insurance policies

  • Started direct sales to end-users worldwide

  • Opened trading accounts with LME ring dealing members

  • Developed a hedging program to reduce annual earnings volatility by 50-70%

Results

  • Switched international sales from an exclusive offtake agreement to spot and long-term contracts with several end-users and traders

  • Increased direct sales from 0% to 80% of all exports

  • Grew annual profit by $3.5m despite customer acquisition incentives

  • Insured open account terms for end-users

  • Started replacing domestic financing with cheaper alternatives

  • Advanced staff competencies through on-the-job training

  • Transferred daily operations to employees

Going forward

Guaranteed assistance when required

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