"I anticipate saving $100,000 on trades this year."
Thomas Vitro
Corporate Controller
Specialized Technology Resources
A division of
NewMarkets International
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Specialized
Technology Resources | Converse
Corbeau USA | Unicon
International
Specialized Technology Resources
FXWeb delivers for global operation.
STR (Specialized Technology Resources,
Inc.), established in 1944 and based in
Connecticut, has operations in seven countries:
Hong Kong, Taiwan, Singapore, Switzerland,
the United Kingdom, Turkey, and Italy. STR’s
laboratories in these countries inspect and test
the consumer products that are manufactured
locally for U.S. importation. The inspections
ensure that the foreign-made products conform
to U.S. standards for safety, quality, and
durability.
While the laboratories operate as STR subsidiaries, consolidation
accounting and other financial functions are handled in the United States.
Corporate Controller, Thomas Vitro, is responsible for making transfers
to the laboratories’ local bank accounts to fund their operations and
allow them to pay employees and suppliers. Part of this international
payments process is the exchange of U.S. dollars for foreign currencies.
The Old FX Story: Terrible Rates. Poor Service. No Control.
Thomas Vitro relied on the bank holding STR's deposit account for their FX
transactions. Tom was well aware that he was receiving heavily marked-up
rates because he compared them regularly with the interbank rates published
in the Wall Street Journal. "Even though the rates we were getting from
our bank were terrible, I didn’t realize we could do better," Tom says.
"I just assumed that the published rates were only available on multi-million
dollar trades. Besides, when I need to make a payment it’s usually fairly
urgent, so I didn’t feel like I had many options."
Not only was Tom being squeezed on FX rates, the entire FX process
was cumbersome, time-consuming, inconvenient, and frustrating. The
bank required that he call in trade requests during a specific time
window, which didn’t necessarily correspond to Tom’s needs or
availability. Telephone calls involved a lot of time "on hold." He found
that communicating foreign names and places over the phone was
unreliable, and that trade requests were often input inaccurately. "The
bank just wasn’t set up to handle FX efficiently. Only a few employees
knew how to do it, and higher trade amounts required higher
authorizations. When the right people at the bank weren’t around to
process my trade request, it was a big problem for me."
When Tom wanted to set up a new beneficiary for repeat payments, he
had to fill out a lengthy multi-part form, send it off to the bank, and wait
six days for an okay. "One time I sent off my form," he says, "and it
turned out the bank had changed the location I was supposed to send it
without telling me!"
The FXWeb Solution: Terrific Rates and Service. Total
Control and Access.
"I received a postcard from Sonnet Financial (now NewMarkets International)
telling me they could deliver FX rates that seemed too good to be true,"
Tom recalls. "So I let them show what rates they would have given me on
my previous ten trades. The savings were huge and since my company was
in a cost-reduction mode, it was the perfect time for me to suggest that
we give FXWeb a try."
That was less than a year ago. Today, Tom notes, "Sonnet’s promises
may have seemed ‘too good’—but they certainly were true. FXWeb
has completely lived up to its advertising."
With FXWeb, STR documented over $50,000 in savings on FX rates in
just six months. For quite a while, Tom compared the rates he received
from Sonnet with those from his bank, and was completely satisfied with
the value he was receiving. "I was a star at our cost-reduction meetings,"
Tom reports. "With our trade volume, I anticipate saving $100,000 on
trades this year using FXWeb."
While rates were the driver in Tom’s decision to use FXWeb, he has also appreciated
the new level of service and efficiency Sonnet provides. "Using FXWeb,
there are no surprises, because I've got so much control. I can initiate
a trade request when the time is right for me, even from home. I'm never
on hol’ with FXWeb, and I don't have to worry about who's around to authorize
my trade. I input the transaction information, so I know it's accurate.
Once I click Authorize I know everything is done, and it won't be coming
back later with a problem for me to fix."
Tom Vitro also likes the ease of setting up repeat beneficiaries in the
system, and access to so much transaction information any time,
anywhere. "It used to take 3 or 4 days to receive trade confirmations
from our bank through the mail," Tom recalls. "Now I can see what’s
happening whenever I want."
Based on their experience with FXWeb savings and efficiency in the
U.S., and the worldwide access power it offers users, STR is
considering bringing its global laboratories into the FX transaction
process. This would allow them to enter trade requests locally on
FXWeb, and Corporate Controller Tom Vitro would merely need to
authorize them.
Tom also gives the service rave reviews. "Once I needed to put the brakes
on a trade request I'd received from one of our labs. I called Sonnet
and they stopped it immediately. I don’t think our bank would have done
that for me. And Sonnet is one of the few companies I've ever worked with
that goes out of its way to keep you informed. When my account representative
changed, my new rep called to introduce herself. That's what I mean about
no surprises with Sonnet or FXWeb for rate savings and service, they keep
their promises."
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Specialized
Technology Resources | Converse
Corbeau USA | Unicon International
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