Getting FX rates' alerts on the go: How this homegrown logistics company optimises cross-border funds on banking app

WHEN an economic crisis hit Sri Lanka in 2019, it sent shock waves across the region, including Singapore, where GGL was based. The integrated logistics group, operated by serial entrepreneur Mr Jay Prakash and Mrs Sanila Jaya Prakash, saw its earnings erode as the Sri Lankan rupee rapidly depreciated.

For leading logistics companies like GGL, this is an unavoidable risk attached to operating an international business.

Headquartered in Singapore, GGL has separate divisions for warehousing, forwarding (air and ocean) and transportation. Its mission is to provide end-to-end solutions in global freight forwarding, which is managed through a trusted network of partners that specialise in all segments of logistics, including ocean, air and land transport services.

"We operate in 15 countries, and the challenge will always be on forex," says Mr Prakash. "Our subsidiaries collect in local currency, so currency fluctuations impact us."

Managing foreign currency risk was just one of the many challenges the couple faced as busy owners of a growing business. From its founding in 2011, GGL has grown its global network of trusted partners to deliver end-to-end solutions in global freight forwarding. The Group operates in 15 countries and offers its services to a wide range of customers, covering warehousing, distribution services, and ocean, air and land transportation. Globally, it works with partners to extend its reach.

Mitigating FX risks

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

As GGL's business grew, the company needed a convenient way to manage its foreign exchange risk by securing favourable exchange rates.

They found a solution in the OCBC Business app. It includes useful features to help small and medium-sized enterprises (SMEs) run their business with ease and gain business insights even when owners are on the go.

One of the features GGL uses most is the Book FX feature. It allows the business owners to mitigate currency volatility by locking in exchange rates for up to two days.

"This feature is great because we know exactly what we are going to get," says Mr Prakash. "No matter what currency fluctuations happen, we still get the value pre-agreed."

Through the app, Mr and Mrs Prakash can monitor real-time foreign exchange rates 24 hours a day on weekdays. They can also set alerts to be notified when the exchange rate hits their targets. This allows them to easily perform exchanges or make payments at their desired rates.

Having access to these tools through the app was especially convenient since the couple are frequently on the road. On average, they spend 20 days in a month travelling for work.

Apart from making foreign exchange transactions, Mrs Prakash says the app has also allowed them to maintain strong visibility over their business.

Says Mrs Prakash: "It saves us a lot of time and helps us to plan. At a glance, we can understand our cash flow, sales trends and expenses."

Making use of data insights

The freight forwarding industry has grappled with global structural headwinds in recent years. Companies like GGL operate in an environment of rising raw materials, sustained political turmoil and lower consumer demand.

"The challenge is that costs have gone up during the pandemic. Today, that cost remains, but now there is a huge supply of capacity," says Mr Prakash.

"This puts pressure on prices and profits. Effectively you need to increase productivity."

These complexities made it crucial for Mr and Mrs Prakash to always have a finger on the pulse of the business. They've found the app to be a useful way to get real-time visibility into transactions, sales, expenses and cash flow.

It has enabled them to easily understand business insights through various trend charts that visualise key metrics.

For example, the sales trend feature analyses current and historical buying behaviour. They can splice the data into different views, such as their top five customers monthly and how much revenue each customer contributes.

These actionable insights help Mr and Mrs Prakash make incisive business decisions.

"When we see a new customer that pays on time without issue with receivables, we give direction to our sales team to nurture the relationship," says Mrs Prakash. "Our sales team will spend more time cross-selling our full range of services to turn them into loyal customers."

The app also has a cash flow trend feature that allows the business owners to analyse the inflows and outflows of money. They've used the feature to identify cash flow patterns to grow extra cash.

"We check our balances on the app every day. This allowed us to understand our cash flow and discover surplus cash we didn't know about," says Mr Prakash. "We then parked this cash in a fixed deposit to earn additional interest."

GGL benefited from digital banking tools to manage its business wherever its business owners are. Mr and Mrs Prakash also benefit from knowing they can count on having a human touch when they encounter more complex problems.

"Our multiple companies have been with OCBC from day one," says Mrs Prakash. "And whenever we have any issues, our commercial banking relationship manager has been prompt in replying. She has been very helpful in supporting our group's growth."

Unlock insights, streamline operations and seize opportunities on the go on a single platform with the multi-useful OCBC Business app, an all-in-one personal assistant for SMEs. For more information, visit the OCBC Business app website here.