Managing global operations, and even those with disconnected sites in one country has become increasingly complex with the lack of visibility requiring valuable resource time to manage, increasing the margin for error and can be a barrier to growth.
Here we look at some of the challenges faced by global organisations. Our webinar on 24th September will show how the Sage X3 ERP system can address these challenges.
No single version of the truth
As businesses grow, often through acquisitions or mergers, they also acquire multiple ERP or Accounting systems. These systems are often not integrated, will have their own processes and their own sets of data; reporting and analysing across these systems is virtually impossible without ‘exporting and importing’ data and extreme dexterity with spreadsheets. The lack of true visibility is almost inevitable.
This lack of visibility, by not having a single version of the truth, can result in delays in decision-making from lack of timely information, high costs, inability to quickly react to change, using up valuable resources and increased margin for error. Those fabulous spreadsheets, with carefully crafted pivot tables and the like, are often out of date almost as soon as they are published. With a single global ERP system, data, inventory and processes can be accessed anywhere, anytime.
Having a single version of the truth – a single, fully integrated, global ERP system – can provide improvements in delivery performance, decreased time-to-decision, inventory accuracy and much more.
Local rules and regulations
Staying on top of local, regional and international laws and regulations – such as tax compliance, privacy laws, payroll, accounting and industry-specific regulations – is a big operational challenge for global companies.
Managing the unique taxation and legal environments of each location centrally can be overwhelming, whilst the local management of these environments can lead to exposure to errors and risk.
These aspects can be managed with a single global ERP system, in local language (where required) and currency – with consolidated reporting in ‘home’ currency if desired. Automatic updates of main currency conversion rates and updates of the latest regulatory compliance should all be part of a strong global system. All transactions can be viewed anytime, anywhere, reducing the complexity, time, margin for error and risk.
Having multiple ERP or Accounting systems to manage local operations results in reports having to be manually reconciled and turned into some form of a global view.
This is a complex and time-consuming process, with enormous scope for error, especially when reports originate from locations with differing tax and regulatory arrangements. A global ERP system can consolidate financial and, if appropriate, operational data through standardised processes. This minimises the risk of errors and speeds up financial close times, allowing employees to spend time on other operationally beneficial tasks.
Having multiple systems with different parameters and versions of data can make it difficult to accurately analyse performance in each local market.
Gathering and interpreting disparate data can lead to a difference in how performance is analysed per location, which can be detrimental to making the right decisions globally. Having real-time access to relevant data in a global ERP system will allow an organisation to analyse and interpret data to accurately assess the performance of each location. The ability to, for instance, track costs, and access accurate inventory information and much, much more relevant information allows organisations to see improvements in decision-making and profitability.