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Steel is one of the most important industrial commodities and is used daily. SCHMOBI has been supplying industrial clients with this versatile and indispensable material since the company was founded in 1959. Based in idyllic Bronschhofen, the SME has around 100 employees and supplies companies from the machinery, electrical engineering and metals industry, as well as their suppliers in Switzerland and the Principality of Liechtenstein.

At the same time, the company is facing new challenges. Peter Breitenmoser is aware of this: “In our industry, we’re used to fluctuations in demand. However, the current geopolitical situation is still unusual. We, along with our business partners, are facing major challenges in this respect. The prevailing uncertainty regarding business expectations continues to result in restrained and cautious purchasing behavior. Accordingly, we must adapt to the underlying conditions in the best way possible.” Peter Breitenmoser adds: “We mainly buy our products in the EU, particularly Germany, Italy and France. But we also source from other countries in southern and eastern Europe. We have also established supplier relationships in India in recent years.”

According to Peter Breitenmoser, the difficult economic situation in Germany is particularly noticeable. “In Europe, the distances are short. We strive to maintain mutual contact. This also includes visiting business contacts and exchanging ideas in person regularly. We maintain very good relationships with our business partners. And we build a personal rapport with them too. At the end of the day, we deal with people in our business transactions, even if day-to-day operations are now almost exclusively conducted digitally.”

Of course, in spite of hedging, there is still a risk that exchange rate fluctuations will impact the income statement. When asked how much of SCHMOBI’s financial success is influenced by the currency, Andreas Koch responded as follows: “Hopefully between very little and none! I always say that we don’t have to make money with currencies. But we shouldn’t lose any either. This sounds simple, but it actually requires a lot of expertise and foresight.” So it’s all the more important to have an expert in currency hedging like ��ţ�������� at your side. This also makes it easier to deal with currency fluctuations. “Fortunately, thanks to the options we have today, the effort on our side is manageable. Owing to strong links to the EU, the CHF/EUR currency pair is very visible. It appears in the business press on a daily basis, and we regularly receive forecasts and assessments from our partner ��ţ��������,” is how Andreas Koch sums up SCHMOBI’s specific approach.

Andreas Koch’s responsibilities also include optimally managing currency fluctuations and ensuring the company’s stability. “We take a very traditional approach to this. We regularly hedge with forwards on a rolling basis. This gives us a certain level of predictability for the months ahead. From my point of view, it’s important to stick to the approach as planned and not to react too much to short-term developments. We process all our payment transactions via ��ţ��������. When we chose our financing partner, it was important for us to have an international bank at our side.”

As CFO, Andreas Koch also sees certain challenges – especially when it comes to international payments. “Payment transactions to Asia were definitely difficult at first. We usually process payments in Europe. Our processes are automated and well established. On account of its experience, ��ţ�������� was able to support us well and we appreciate the regular exchanges with our client advisor, who is extremely useful as a sparring partner.” Andreas Koch is convinced that the key to successful collaboration with ��ţ�������� lies primarily in discussing needs and finding solutions.

What tips do Andreas Koch and Peter Breitenmoser have for other companies regarding successful currency management?

“This is an important issue and must not be neglected under any circumstances. It’s important to discuss options with your financing partner and form your own opinion. You should feel comfortable with the chosen solution. After all, from our perspective, it’s essential to pursue it as systematically and sustainably as possible. Our business needs a bank with a global network and excellent access to the international payment system. The warehousing business requires a great deal of capital. There’s also a need for regular capital goods investments. The financing lines are correspondingly high, so a strong financial partner is essential. What’s more, we want to be a reliable business partner for our international suppliers. We can rely on ��ţ�������� entirely in this respect.”