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How ERP-Systems Support Global Trade

06.02.2020

Terms such as sustainability, new markets, manufacturing on demand, global networking, trade wars, digitization and automation, service-oriented and complementary business models, localization - or, if you look at the very latest, the coronavirus outbreak (COVID-19) - all these have a significant impact on global trade.

Globalization without borders?

Terms such as sustainability, new markets, manufacturing on demand, global networking, trade wars, digitization and automation, service-oriented and complementary business models, localization - or, if you look at the very latest, the coronavirus outbreak (COVID-19) - all these have a significant impact on global trade. Thus, volatility, growing uncertainty, but also an immense abundance of new opportunities have a significant effect on the degree of "boundlessness" for globally integrated enterprises.

For international firms, borders or barriers can appear out of nowhere. And the current example of the corona pandemic in particular shows how flexibly companies sometimes have to act in order to survive in the market. They must then focus on their core competencies and quickly find suitable strategies within new rules of the game. The winners here are often companies that are able to provide the right benefits to their customers on the one hand and make optimum use of the available resources on the other.

Optimization of production with ERP-systems

Especially for companies with worldwide production plants, delivery bottlenecks can have enormous consequences, even leading to production downtimes. In addition, strong fluctuations in demand could have an impact on production. Therefore, appropriately implemented ERP-systems that enable cross-plant planning help to make the best possible use of available resources and optimize supply chains. In the caniasERP system for example, the company can be created as one client and several plants can be integrated. This way, resources and raw materials of a company can be planned across plants that are physically distant from each other and, e.g. transport time and transport costs can be taken into account in order to link the production processes of several plants efficiently.

Quick response options and well-founded decision-making processes

Using the right tools, the efficiency of the production environment and potential variances can be displayed in real time. Using individual KPIs, which can be defined specifically for the individual locations, production lines, capacity groups or workstations, deviations can be recorded immediately and adjustments made if necessary.

A common data basis, in which base data are collected company-wide and where the different plants can simultaneously make additions and adjustments, provides consolidated information for all functions in accounting, production and supply chain. Integrated translation tools allow this to be done globally in the respective local language. This means that reports can be created for the entire supply chain, both at enterprise level and at the level of the individual plants, and provides basic data for decision-making processes.

Remain flexible and use the available potentials

International firms are increasingly interested in new local sales markets at the respective production location. Global networking and cooperation with other companies, a growing sharing economy or even purchasing associations that merge are further strategies of globally active enterprises. ERP-systems with high flexibility and a wide range of modules allow the software to be adapted to current conditions and strategies: The multi-client support enterprise solution, for example, is able to depict several independent companies in a single software installation in an instant. With cross-client implementation Financial Accounting data, for example, can be consolidated across all clients in a so-called consolidation client, so that a group-wide result can be put out. In this context, it is also important that the ERP-system provides various accounting standards. Other examples of useful modules include EDI (Electronic Data Interchange) tools, which can be used to work closely with wholesalers or suppliers. The transfer of inventory and sales data from other ERP-systems can thus be automated.

caniasERP offers efficient solutions

Flexibility is a key issue for global companies, because political developments, such as Brexit or trade disputes, digitalization and social changes have made it necessary to be always prepared for change. The sudden threat to public health just now and the resulting economic situation have given these processes of change a considerable boost. For companies, this may mean that business models need to be rethought and realigned. A suitable ERP-provider who is also prepared to face the challenges can help to overcome these and always offer suitable solutions. Hence, caniasERP offers an extensive portfolio of modules that are constantly being developed.

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Digital Transformations is not an Option But Must

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