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18 the customer is considerably more generous than in the case of a normal forward. However, as Florian Richardt explains, “If you offer the customer an arrangement of this kind, you have to make sure that the relevant pro- cesses function properly. Contracts with Flexible Forward have direct consequences. Obviously, Heraeus has to procure the precious metals at a price that makes the contract cost-effective. That means that information has to be exchanged quickly, since mere seconds can some- times make a difference.” It was soon clear that this approach would work. It worked so well, in fact, that it was a major factor in Continental naming Heraeus “Supplier of the Year” in 2015. It seemed only logical to offer Flexible Forward to other customers as well. Florian Richardt sought the help of Bikash Agarwal, account manager for Precious Metal Solutions, who is based in Singapore and focuses on the Asian market. Convincing colleagues, then customers In a first step, Richardt and Agarwal reached out to sales colleagues in Heraeus business groups that offer products containing precious metals. At first, however, cooperation was not so easy. “The idea of working together across busi- ness groups is still new at Heraeus. We had to overcome certain reservations. Many of our colleagues worried that we might interfere with their customer relationships or even try to siphon off some of their profit margin,” says Bikash Agarwal. “Ultimately, though, it all depends on the people involved. Some colleagues are more open to new ideas, while others immediately focus on potential prob- lems – and to a certain extent, that’s normal.” Florian Richardt quickly recognized the need for a structured, fact-based approach. “The first step was to convince our sales colleagues of the benefits of Flexible Forward, and the second step was to convince our customers. The best way to do that was with facts and figures.” Agarwal and Richardt regularly analyze data to identify the customers who might benefit from Flexible Forward. They have started holding monthly meetings with sales teams where they present their findings and discuss whether and how they can best serve their customers. They have also introduced semiannual meetings attended by over 100 sales staff members; this promotes internal communication and offers an opportunity to present examples of best practices. The next challenge was to convince customers. “Many customers ask critical questions, of course. The very term ‘price hedging’ is met with skepticism.” Yet price hedging is an extremely common way of dealing with currency or commodity fluctuations. “Often we have to convince not only the customer’s buyers, but also its finance depart- ment,” explains Agarwal. More than a forward As Richardt explains, “Our customers benefit in a number of respects. With Flexible Forward, they have a secure »The first step was to convince our sales colleagues of the benefits of Flexible Forward, and the second step was to convince our customers. The best way to do that was with facts and figures.«

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