Accurate budgeting tools implemented to assist finance team
Significant savings in transfer fees
Multi-currency cards for staff spending
Case Study
Payment system optimisation plus dynamic forwards to assist the finance team with more accurate annual budgeting
Overview
A leading mechanical engineering company headquartered in London, with offices in France, Germany, and Italy, specialises in providing cutting-edge engineering solutions to major car manufacturers across Europe. The company plays a key role in developing components for electric vehicles (EVs) and optimising production processes for the automotive industry.
To streamline its international operations and protect against market fluctuations, the company required a comprehensive solution for managing staff expenses during overseas travel and mitigating foreign exchange (FX) risk when dealing with global suppliers and clients.
We partnered with the firm to provide multi-currency payment solutions for staff and an FX risk management strategy using dynamic forward contracts to help provide clearer and more accurate budgeting within the finance team and the overall business.
Challenge
As a key player in the automotive industry, the firm’s engineers frequently travelled between offices and client sites across Europe to oversee projects and collaborate with car manufacturers. This required an efficient way to manage travel-related expenses, such as client entertainment, accommodation, and transport, without incurring high foreign transaction fees or dealing with complex expense reporting.
In addition, the company faced significant FX risk when purchasing components from international suppliers, particularly in USD and EUR, and receiving payments from clients in multiple currencies. Protecting profit margins from FX volatility was a priority for the firm.
Solution
We delivered a two-pronged financial solution tailored to the client’s needs:
Payments
Multi-Currency Cards for Staff Spending: We introduced multi-currency cards for the company’s employees, enabling them to easily manage expenses in local currencies while travelling between European offices and client sites. These cards reduced the impact of foreign exchange fees and eliminated the need for currency conversions during travel. By simplifying expense management, the firm reduced operational costs associated with staff spending on dining, transportation, and client meetings, directly benefiting the company’s bottom line.
FX Risk Management
Dynamic Forward Contracts: To protect against currency volatility, we implemented dynamic forward contracts, giving the company flexibility while locking in favourable exchange rates for future transactions. This allowed the firm to hedge against FX risk when purchasing components from international suppliers, ensuring stable pricing and protecting profit margins. By having this hedging strategy in place, the company was able to navigate market fluctuations without compromising profitability on cross-border transactions.
Electric Vehicle Technology
This automotive engineering company specialises in providing advanced engineering solutions to the car industry across Europe. With a focus on innovation and precision, they collaborate with major manufacturers to develop cutting-edge components for electric vehicles (EVs) and optimise production processes.
Industry
Engineering
Subsector
Automotive
Client Type
Enterprise
How we helped
Outcome
With the implementation of multi-currency cards and a strategic FX risk management plan, the automotive engineering firm saw significant operational and financial improvements. The multi-currency cards helped reduce international transaction costs, making staff travel more cost-effective and improving the efficiency of expense reporting. Meanwhile, the dynamic forward contracts provided a robust defence against FX market fluctuations, allowing the firm to maintain cost predictability on both the purchasing and revenue sides of the business.
As a result, the company was able to better manage its global operations, reduce unnecessary costs, and safeguard its financial health in an increasingly competitive automotive market.
Key Solutions Delivered:
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Payments: Multi-currency cards for staff spending
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FX Risk Management: Dynamic forward contracts for hedging currency risk
These solutions equipped the finance team with the tools they needed to operate efficiently across multiple European markets while protecting them from excessive expenses and unpredictable currency movements.