The Tradecloud digital platform provides unique automated and integrated treasury management of import trade flows for any import and export business. Import trade is a complex process and requires an import solution that has extensive functionality to service each key component of the global supply chain process in synergy: Buying; Shipping; Treasury; Import Finance and Accounting.
Import trade transactions create foreign exchange and cash flow exposures which are best managed using a world class best practice import solution such as the digital platform provided by Tradecloud.
Import Treasury Management carries a high risk of financial exposure to all businesses active in import trade. Unplanned or Uncovered import trade foreign exchange exposures can wipe out an entire year of profit and more for an import and export business. Recording and managing these exposures on excel is fast being recognised as a thing of the past. Excel with or without ERP or other inputs is fragmented and risky and is being replaced by world class digital platforms such as Tradecloud, that significantly streamline global supply chain logistics for any import and export business.
- The Tradecloud digital treasury solution is unique because it extends import trade treasury management into import buying, shipping and cost accounting. World class import treasury management on an integrated digital import trade platform must meet the following criteria and capabilities:
Provide an automated accurate and committed foreign exchange conversion rate into an automated costing per unit of product for buyers to make product selections and place import orders - Enable dynamic controlled and accounted for changes to committed exchange rates used in per unit of product costings
- Ensure exchange rates used in product costings and automated accumulation of treasury exposures comply with formal treasury management and accounting policies
- Enable application of the selected treasury management policies including the ability to:
- Cost import product / orders using a market related spot plus forward cover points;
- Cost import product / orders using a specific forward exchange contract rate or an average of forward exchange contract rates for the applicable period;
- Cost import product / orders using a treasury provided standard rate for the period
- Accumulate real time accurate import trade related treasury exposures, covered positions, open positions, import order utilisations by date by currency
- Provide comprehensive treasury management reporting including hedge accounting inputs
The Tradecloud digital platform provides all of the above as a best practice digital solution for import trade treasury management. The platform includes a live spot market treasury feed and accurate interest rate curve per currency to calculate market related forward cover rates. Alternatively importer forward exchange cover contracts can be entered into Tradecloud and accurately auto allocated, linked and used in import product costings / order placement.
This approach significantly simplifies the import treasury management complexities typically associated with supply chain logistics and can be tailored to suit any import and export business.