Estimating and Bidding in other currencies
There have been significant changes in the value of currencies. The US dollar has risen dramatically over the last few years. The Euro has suffered a fairly significant fall, as has the Chinese Renminbi. And, following Brexit, the Pound has dropped dramatically.
It is not only the changes that are important, however; it is also the volatility. The currency markets are continuing to change. For estimators buying goods in different currencies, as well as for those estimators bidding in different or even multiple currencies, this volatility can cause lots of additional work, and can make the estimating process nearly impossible to get right.
Through our work with multinational companies we understood that it is critical for large corporations that work across many countries to manage variations in currency. In response to a request from a number of our clients, we added various ‘Multi-Currency’ functionalities into our software.
Estimating in different currencies
The first issue addressed is for those who need to include goods and services priced in different currencies in estimates. Our ‘Multi-currency’ feature allows both multinational organisations, as well as companies who use Resources from countries with different currencies, simple Exchange Rate management.
Benchmark Estimating Software now includes a feature where Resources can be priced in multiple currencies. The estimator can nominate an exchange rate, or use the system default, and then the Resources are valued in the base currency of the estimate. Benchmark Estimating Software does all currency conversion calculations automatically.
Adjust an exchange rate across a bid. This helps you to produce more accurate estimates quickly and with confidence.
If that exchange rate varies, the estimator can easily adjust the new exchange rate, be it for an individual Resource or an entire Project, and the Resource costs, and of course the Project cost are then updated automatically.
A graphical and tabular analysis tools gives you powerful what-if analysis data before committing to your exchange rate changes. Reports showing the value of the bid in different currencies, thus enabling estimators to understand their exposure to variation in currencies.
Benefit from increased efficiency, less chance of error and greater accuracy across your business, as you now have the ability to maintain all your suppliers’ price lists from all countries in one single database.
We understand that large companies with global operations have an additional challenge. They need to ensure that their estimating software allows them to quote in multiple currencies for the total project, in addition to handling direct costs in multiple currencies, as just described.
Bidding in multiple currencies
A second need of our users was to be able to bid in different currencies. An estimator based in France using a database exclusively in Euros may be asked to bid a projects in UK pounds. Benchmark Estimating Software now allows you to nominate the currency for any bid. This ‘Multi-Currency’ quoting function allows estimators to work on the same bids in different currencies and utilise the same centrally managed database.
This is something that no other estimating software package can deliver.
Now the uninitiated (and that previously included us!) would think that you simply converted costs in accordance with the exchange rate, and expressed a price in two different currencies. It turns out that, as there are different risks associated with different currencies, some estimators needed to allow for these. Benchmark now has facilities allowing clients to establish risk profiles for respective currencies.
The ‘Multi-Currency’ quoting function allows estimators to:
- Nominate which currencies they want to produce an individual bid in, and
- Have a separate “Extras” screen (where profit and indirect costs can be entered) for each bid currency.
Managing Security and control
Like many organisations, controlling the use of advanced features like this, can be very important. The following features in Benchmark Estimating Software will give you full control in order to increase consistency across your business:
- Default Currency details including exchange rates and currency formats (accessible only to administrators)
- User permissions so only authorised estimators can nominate Resource-specific exchange rates (where you may have contracted exchange rates with a supplier), and
- User permissions so only authorised estimators can modify global Exchange Rates for a Project.
So, if you are one of the many estimators working in the world of different currencies, you can save time and gain a lot more power by using the many currency features available in Benchmark Estimating Software. Benefit from greater flexibility in handling these scenarios, faster and more effectively!