Transitions
From volume to value
Client profile
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Mid-tier base metals producer
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Exports over 80%
Challenges
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Shrinking domestic market
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Falling profitability
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No access to global commodity and financial markets
Solutions
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Diversify international sales
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Develop trade finance and customer services
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Increase added value and sales margins
First year investments
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Defined project goals, milestones, and deliverables
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Researched international market
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Set up a legal structure for export finance, international sales, and customer services
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Organized international accounting, financial reporting, transfer pricing, controlling functions and processes in accordance with all stakeholders’ requirements
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Upgraded corporate marketing materials
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Developed new customer accounts in most profitable markets
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Structured credit facilities and reverse factoring arrangements with international banks
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Organized permanent stocks in principal foreign markets
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Secured international cargo, political, and credit insurance policies
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Organized just-in-time deliveries worldwide
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Launched direct sales to end-users in principal foreign markets
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Opened trading accounts with LME ring dealing members
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Developed hedging strategies with LME futures and options
Second year results
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Switched international sales from long-term offtake agreements to a mix of long-term, midterm, and spot contracts with end-users and traders
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Increased sales to end-users from 0% to 80% of all exports
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Improved sales margins by 3% net of customer acquisition incentives
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Grew annual profit by $3.5m
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Upgraded delivery terms from FCA/FOB to CIF/DAP/DDP
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Shifted payment terms from prepayment/CAD to insured open account
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Reduced market volatility through price hedging
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Upgraded staff competencies through on-the-job training
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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