Foreign Exchange Hedging in Practice for Long-Term Projects

Storepro faces several cost variables in long-term projects, including steel prices, international freight rates, and foreign exchange (FX) rates. For large warehouse builds with long lead times, FX volatility can significantly impact margins.

Managing cost uncertainty in long-term projects

Smaller projects can usually be supplied from inventory, making costs more predictable. But large warehouse projects often involve long lead times, sometimes more than a year between tender and installation. During this period, Storepro faces several cost variables including steel prices, international freight rates, and foreign exchange (FX) rates.

For long-term projects, FX volatility can significantly impact margins, particularly as a large portion of Storepro’s turnover is in USD.

Balancing pricing certainty and FX exposure

Customer expectations vary depending on the project. Some clients require fixed pricing for certainty, while others are more comfortable absorbing cost fluctuations.

With these variables in mind, Storepro needed a flexible approach to foreign exchange hedging to balance customer expectations with its own risk management.

Applying a flexible hedging strategy

Corpay helps Storepro manage FX exposure through flexible hedging solutions that allow the business to lock in exchange rates when needed while retaining upside potential.

This approach enables Storepro to use forward contracts strategically, aligning hedging decisions with project timelines and customer requirements.

Improving decision-making with market insight

In addition to execution, Corpay provides timely market insight and commentary to support decision-making around key events such as central bank announcements.

This helps Storepro better understand currency volatility and apply hedging strategies at the right time.

Supporting operational flexibility

Storepro’s payment structure often involves staged payments, including deposits at order placement and balances before shipment, sometimes across multiple deliveries.

Corpay’s solutions provide the flexibility to apply hedges across contracts or adjust timing to match supplier schedules, reducing operational friction.

Strengthening project delivery and customer confidence

The partnership with Corpay enables Storepro to manage FX exposure more effectively while maintaining flexibility across projects.

• Improved risk management through tailored hedging strategies

• Operational efficiency with reduced administrative burden

• Customer confidence through pricing certainty where required

• Better visibility into global currency movements

Together, these capabilities allow Storepro to deliver large-scale projects with greater confidence in both cost control and customer outcomes

Learn more about how Corpay supports foreign exchange hedging and currency risk management for global projects.

Cross-Border

Risk management