responding quickly and timely to exchange rate fluctuations
By its nature, the global marketplace is exposed to volatile exchange rates that can seriously affect the profitability of certain products. Continuous analysis of exchange rate fluctuations, the simulation of effects of exchange rates on production costs, and appropriate clauses in supply contracts are essential for any business that wants to keep control of its finances.
By its nature, the global marketplace is exposed to fluctuating exchange rates that can seriously affect the profitability of a product. This is particularly the case for products made mainly from materials imported from countries with a different currency, or where expensive imported components account for most of the product costs. In order to achieve planning certainty, companies use FACTON EPC to continuously analyse exchange rate fluctuations and to simulate the effect of specific exchange rates on their production costs.
Sudden changes in the exchange rate effect products with a small margin more than others. In the best case, the manufacturer is in for a windfall. In the worst case, his margin is wiped out. Enterprises need to consider both scenarios: Even if the change in the exchange rate has a positive effect on the company's production costs, there might be long-term implications, as suppliers might be unable to compete and even go out of business.
FACTON EPC – transparent tracking of exchange rate fluctuations
With FACTON EPC, users can enter the relevant currency exchange rates and value dates in the master data of the system. This information is then automatically taken into account, and the applicable exchange rates are included in the costing.
In the costing dialogue, users simply need to select the actual "Display currency". At the push of a button, the entire costing is performed in the chosen currency. If required, the original currency is also displayed for reference purposes. With FACTON EPC, companies can thus generate transparent currency-focused analyses in order to determine the share of purchases that are affected by fluctuating exchange rates in their production costs.
Together with the powerful simulation and evaluation tools of the software, the currency functions of FACTON EPC ensure maximum transparency as regards exchange rate fluctuations and their effects. As a manufacturer, you will not only keep abreast with what is happening in the money markets, you can also obtain detailed breakdowns for negotiations with customers and suppliers.