Reducing FX risk and unlocking liquidity in a high-volume global supply chain

The Challenge

Navigating margin pressure and FX risk across 21 countries

Convera works with one of the world’s largest privately owned importers and exporters of frozen and chilled food products, to help manage the impact of currency volatility, shifting trade dynamics, and fragmented payment infrastructures on their operations.

Based in the UK, with a global footprint and key sourcing and export markets spanning 21 countries, the business has a weekly international payment volume of $100 million. It operates in a high volume, low margin commodity environment driving pressure to manage currency volatility while maintaining competitive pricing.

The company’s global procurement model requires sourcing from regions such as Brazil, Thailand, India, and Vietnam, while exporting to hubs like China, Korea, and the EU. Dealing with a range of currencies that fall outside the coverage of traditional banks or FX providers adds a layer of complexity when managing exposure in less liquid, or “exotic,” markets. At the same time, access to trade credit is essential for maintaining liquidity and ensuring transactions can be executed quickly and reliably.

Without the right payments partner, these challenges could lead to increased exposure to sudden currency fluctuations, reduced visibility into cash flow and margin forecasts, and slow payment cycles that affect supplier relationships.

The solution

Turning FX complexity into a structured treasury strategy

Convera worked closely with the Head of Treasury to develop a flexible and consultative approach to managing global payments and foreign exchange risk. Supported by ongoing strategic guidance from Convera’s specialists, the business can adapt its approach in response to geopolitical shifts and procurement cycles, balancing short-term pricing competitiveness with effective long-term risk management.

The company uses a combination of forwards and swaps. Forward contracts allow it to lock in exchange rates for up to two years, increasing the accuracy of cash flow and margin forecasting. FX swaps allow Treasury teams to buy and sell the same currency simultaneously with two settlement dates, to help support near-term liquidity needs and align timing of currency inflows and outflows.

Convera provides critical coverage in complex and less liquid currencies, where traditional providers often fall short, while offering favorable trade credit facilities. This means the business can accelerate payment and conversion cycles while maintaining liquidity across its operations.

The Results

Unlocking working capital while stabilizing FX exposure

Working with Convera to optimize its FX risk and payments strategy has helped the company operate confidently across a highly complex and global supply chain.

The use of forward contracts and layered hedging strategies has enhanced visibility into future currency exposures and cash flows, helping stabilize costs and generate more accurate pricing and financial planning. And, the introduction of FX swaps has helped optimize cash flows and align currency obligations with their underlying business needs.

The business is particularly appreciative of Convera’s ‘no deposit trading facility’ which helps facilitate smooth payment flows by accessing incremental credit risk services as an alternative to existing bank credit lines. Combined with Convera’s low fees, this helps free-up working capital and ensures payments are released in timely manner, strengthening supplier confidence.

In addition, operational efficiency has been enhanced through less reliance on manual processes, faster execution, and improved treasury workflows. For a business operating on a global scale, these improvements translate into a more resilient financial foundation, even in volatile market conditions.

Please note:
1. Foreign exchange products such as forwards and swaps involve risk and may not be suitable for all clients.
2. The ‘no deposit trading facility’ depends on eligibility criteria and subject to credit approval.