Case Study: Dow Corning achieves $5M annual FX savings with FiREapps

Dow Corning - Customer Case Study

Dow Corning, a global specialty chemical manufacturer, faced significant challenges in its currency risk management program due to highly manual processes within its complex SAP environment. These processes were time-consuming, error-prone, and left the treasury team without full visibility into exposures, potentially causing over- or under-hedging. An additional challenge was an individual currency value at risk (VaR) hedging approach that resulted in a high number of costly trades without leveraging natural hedges.

Dow Corning implemented FiREapps Enterprise to automate its exposure extraction and enable straight-through processing. The FiREapps solution provided the necessary data integrity and visibility, freeing 600 hours of human capital annually and reducing market risk by $750,000. Furthermore, FiREapps enabled a new portfolio VaR approach, which identified significant natural diversification and allowed the company to eliminate two entire hedging programs. This transformation resulted in gross annual savings of $5 million, with the portfolio approach alone contributing $2.75 million in savings.

Dow Corning

Srikanth Dasari

Head of Treasury Front Office