Reduce Risk with ERP Software
Globalization has transformed manufacturing, opening new doors for businesses and consumers. But with exciting opportunities to expand enterprises and reduce costs comes tumult. Forces outside of manufacturers’ control can dictate how their companies perform in the global marketplace. To protect their businesses from international turbulence, manufacturers need to have as much control over their processes as possible.
That’s the role of enterprise resource planning (ERP) software. ERP facilitates granular visibility across multiple locations. The software also provides a user-friendly interface to give users deep insights and control over operations. Find out what makes ERP a must-have for global manufacturers looking to reduce risk.
Trade and Tariffs
Right now, the international business community is fixated on the trade wars. It was recently announced that the U.S. would implement 10% tariffs on $300 billion worth of Chinese goods, beginning on September 1st. China has also imposed large tariffs on U.S. exports. Last month, a report revealed that 41% of American companies are looking to shift manufacturing from China. Experts are predicting that tariffs will have a severe impact on the economy.
Fortunately, there’s hope for ERP users. In one study of U.S. manufacturers, 67% of respondents confirmed that ERP was effective in managing the effect of tariffs. ERP offers deep supply chain visibility, allowing manufacturers to analyze the impact of supply shortages on their costs. Analytics and business intelligence (BI) can also be employed to help businesses mitigate risk and plan for future scenarios. By harboring back-end data in a single solution, ERP cuts down on manual data entry and reduces errors. Users can quickly access this information to work together to respond to issues and make cost-effective decisions. ERP software links the trading partners and processes that make up your supply chain to combat challenges.
Supplier Relationship Management
In a hectic global trade environment, one of the crucial tools in your ERP system is your Supplier Relationship Management (SRM) module. An SRM module creates a single view of purchasing, suppliers and customers, giving manufacturers timely information to make smart decisions to reduce costs and maintain compliance. It also automates administrative overhead associated with purchasing to improve efficiency. You can work on buying strategies to combat tariffs, such as locking in long-term pricing agreements with suppliers or having vendors absorb added costs. With SRM embedded in your ERP, you can quickly locate the information required to make the right purchases.
The SRM module also streamlines communication between manufacturers and suppliers. Epicor ERP’s Supplier Connect feature uniquely equips manufacturers to connect with vendors. Suppliers can easily confirm changes to purchase orders or respond to bids and returns via their own supplier portal. By eliminating the need for inquiries to come through email, phone or fax, Epicor allows your business to react quickly to changes. A seamless relationship with suppliers makes manufacturers more effective at fighting global business issues.
Trade turmoil makes inventory management critical. After all, you want to minimize waste as much as possible when you’re paying extra for your inventory. ERP is estimated to achieve a 20-30% reduction in inventory, amounting to substantial savings for your business. The software provides the key functions for updating and maintaining raw materials, WIP and finished goods inside one module. It also provides comprehensive tracking and audit control to help you comply with global standards. ERP ensures you always have real-time visibility into your inventory levels, so you can plan for future demand and avoid excess stock.
Recently, the trade war has turned into a currency war. On August 5th, China devalued the yuan after tariffs were announced. Two days later, the 10-year Treasury yield fell under 1.6%. Even when foreign exchange rates are more stable, managing multiple currencies is a challenge for most global manufacturers. The process often involves manually entering exchange rates into an ERP system. This time-consuming method could potentially result in costly blunders.
Unity X is an Epicor integration solution that automatically updates exchange rates. Unity X seamlessly connects Epicor with XE Currency Data API, the leading authority for accurate, up-to-date currency values. With exchange rates instantly synced into your Epicor multi-currency module, you can confidently execute international business deals and purchases. Certified consultants can install Unity X within a couple hours, giving you a premier solution without hassle.
Even with all the uncertainties in global manufacturing, Epicor ERP can help you stay profitable. Unlike most ERP solutions, Epicor includes global engines to help you manage taxes and currencies anywhere you conduct business. It also supports enterprises with plants operated across multiple countries and in multiple languages. Epicor gives you control over your international manufacturing processes.
For over 20 years, Datix has worked with manufacturers and distributors to tackle their biggest challenges. We’re an Epicor Gold Partner that has executed countless ERP implementations from start to finish. Additionally, we developed Unity X to ensure clients have up-to-date currency rates at all times. With our certified consultants at your side, you can mitigate a range of enterprise risks.
Protect your enterprise from international business challenges. Learn more about our comprehensive solutions and services by reaching out to one of our experts today!