How to manage all additional cost coming with a trade deal
Additional trading costs are depended on various trade characters. I.e. product, freight route(s), origin, commission, payment term, incoterm, foreign exchange etc. You want your trader to be aware of these costs and consider them at the moment of preparing a new trade deal.
To make sure your trader is aware of this, you need an easy overview of all costs of that trade. This way you know that costs are not forgotten and with a proper template, the process is speeded up. That’s why we developed Trade Capture. Trade Capture is developed in our Cloud4Commodities solution, but can also be implemented by itself.
Within C4C Trade Capture each trade is connected to a cost template. This cost template is built up out of several different cost components. Via the settings of each component a simple or advanced formula can be set-up which automatically calculates the expected cost for that trade. Per cost can be defined if the trader is allowed to manually adjust it.
Depending on the delivery period, payment condition and foreign exchange hedge policies, the forward rate is automatically set to calculate all cost components back into your company currency. This way total cost and expected margins are calculated.
These templates make sure cost are not forgotten and it speeds up the process of creating new trade deals.