Currency impact on import cost
An importer buying in several currencies made the effect of exchange rate moves on landed cost and margin visible.
- Currencies modeled
- 7
- settlement books
- FX component
- Isolated
- from margin
- Exposure view
- Forward
- by window
- Refresh
- Daily
- with market rates
Illustrative scenario · example figures
The challenge
Purchases settled in multiple currencies, but cost reporting used a single booked rate, so margin swings driven by currency were invisible until the hedging desk reconciled much later.
What we built
We modeled cost at both booked and market rates, isolating the currency component of each purchase and its effect on landed cost and margin.
- Cost and margin split into operating and currency components.
- Exposure by currency, supplier, and settlement window.
- A view that ties realized currency impact back to hedging decisions.
Outcomes
- Currency-driven margin swings are separated from operating performance.
- Exposure by currency is visible before settlement.
- Hedging and pricing decisions share one set of numbers.
Where the data came from
Data is drawn from the systems the operation already runs on and delivered in the client’s own tenant.
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