Enhance Your Global Expansion with the Right Globalized ERP System for Your Business!

As businesses expand from domestic to international markets, establishing multiple subsidiaries across various countries and regions, it is crucial for executives to ensure that their ERP systems can support and facilitate new business models. Whether it's an integrated global enterprise or a regionally operating distributed business, the deployed ERP system must be capable of adapting to current operations and supporting future business development.

 

01 What Kind of Finances Do We Need?

Financial leaders at corporate headquarters often require comprehensive financial information to provide shareholders and fiscal departments with a full overview of business reports. Operating in multiple regions generates multiple sets of reports that need to be consolidated. A globalized ERP system can easily perform automatic consolidation, reducing the inevitable errors that occur when reports are handed over among many people.

 

To fully leverage the financial consolidation capabilities of a globalized ERP system, management should consider whether the ERP system can support the business model of the enterprise.

• First, for enterprises adopting a fully integrated operation model, all business areas and subsidiaries must operate a unified ERP system.

• Second, for enterprises adopting a regional operation model, each regional subsidiary can operate different systems and regularly submit consolidated financial statements to the headquarters for review.

• Third, a combination of the above two models. However, the second model has a problem: when the company uses multiple non-standardized solutions, manual data transfer across multiple local systems will be required, which is not only time-consuming and inefficient but also increases the risk of reconciliation errors. In summary, no matter whether your enterprise is expanding regionally, expanding product lines, or establishing new subsidiaries and opening new channels, your globalized ERP solution must be flexible enough to support your expansion model and meet specific business needs.

 

02 Can the ERP System Handle Different Currencies, Tax Systems, and Legal Frameworks?

Another key consideration for multinational enterprises when choosing a globalized ERP solution is whether the system can handle multiple currencies, tax systems, and different legal requirements. Exchange rates significantly affect cross-border business. Transaction taxes vary from country to country, and financial reporting requirements are also vastly different. In addition, changes in local regulations can have a profound impact on international business.

 

A suitable globalized ERP system should have established some typical successful cases in the regions where your business operates, support the automatic handling of regional differences with a unified system, and be able to quickly deploy updates according to changes in exchange rates, taxes, and business regulations.

 

03 What Level of Visibility Can the ERP System Provide?

While efficient financial consolidation and the need for tax and accounting compliance are important factors driving the adoption of globalized ERP systems, the advantages of globalized ERP systems are not limited to financial management.

 

Global business management systems can also help enterprises streamline and establish standardized operating processes, covering everything from supply chain management and inventory control to customer relationship management and invoicing. The higher the degree of process standardization, the greater the control and visibility of business operations at corporate headquarters.

 

A suitable ERP system should help you establish the necessary standardized processes while also providing sufficient flexibility and necessary customization.

 

04 What Customization Features Does the ERP System Offer?

It may seem contradictory to put customization and standardization together, but in fact, each implementation of a globalized ERP system requires customization according to specific businesses, geographic locations, and business objectives. For example, employees may need to view dashboards and data in local languages and currencies, and some local business flows may not need to be changed for the time being because the subsidiary's implementation of these changes may require IT support from the headquarters, leading to implementation delays and additional costs. However, these local business data still need to be seamlessly summarized and consolidated at the global level.

 

Since a consistent information map needs to be provided to all shareholders, all calculations and consolidations should be based on data from the same underlying database. Your globalized ERP system provider should be able to provide successful implementation cases for customization of multiple languages, currencies, and business flows, and be able to meet your needs for global reporting.

 

05 Can the ERP System Scale in Tandem with Business Growth?

The strength of scalability determines the extent to which the globalized ERP system can support you in the process of business development. With an integrated system that can provide customizable instances for each new business, you will be able to establish business processes in new business areas more quickly and easily. Your ERP software should support rather than hinder your business growth.

 

06 Can the New ERP System Coexist with Local ERP Systems?

Many enterprises have invested heavily in local ERP solutions. Therefore, this new ERP system for managing global expansion must be able to coexist with the systems previously deployed at the corporate headquarters. The reality is that a large amount of original data is stored in the old systems, and you cannot migrate it to the new system in the short term. Dual-layer ERP implementation allows these enterprises to retain existing systems and introduce more agile global cloud ERP capabilities in new subsidiaries and departments without interrupting current business operations. A suitable globalized ERP solution must ensure that these two ERP systems are fully synchronized.

 

Enterprises may have concerns about migrating to a globalized ERP system, but as long as the right solution and experienced providers are chosen, a globalized ERP system can help enterprises unleash tremendous potential for development.

 

About Hitpoint

Hitpoint Cloud is headquartered in Shanghai, with branches in Shenzhen, Beijing, Nanjing, Wuhan, and the United States. The Hitpoint Cloud team has been focusing on Oracle NetSuite products since 2009 and is a star partner of Oracle NetSuite for many years, providing cloud computing solutions for various modules including finance, distribution, project management, and e-commerce. It has rich experience in the implementation, localization, secondary development, and training of Oracle NetSuite. With a support team of over a hundred people for implementation and development to support customer business operations, it is committed to enabling every customer in the cloud era to unleash potential and achieve greater success, helping enterprises "smartly" win the future.