Today's challenges in distribution: How to choose the right ERP

For businesses navigating the international trade tariff changes, evidence from our SME survey shows that many manufacturing and distribution companies are under a lot of pressure to model their future financial scenarios. On top of current challenges, including how to minimise costs and optimise productivity, businesses are now looking to redefine their market strategies, operational planning, and long-term growth opportunities across industries. Moreover,  there isn't just one resolution to avoid supply chain disruptions in the future, but many. 

If you could embed tariff tracking and pricing in your systems, it would surely avoid you reacting later down the line when your pricing needs to shift the moment tariffs do. Additionally, it would avoid knock-on effects on your procurement, sales, inventory, and finance teams.

One of the main factors contributing to low confidence (as our survey results indicate) is outdated or inflexible finance/ERP systems. There are emerging trends that every SME needs to look at: 

• Technology limitations: Our report findings show that 48% of UK SMEs' financel decision makers (FDMs) are more aware of the weaknesses of their current ERP or financial management system as a result of recent turbulence.
• Understanding of Trade rules:  there is a skills shortage of expert teams being able to effectively forecast and carry out financial planning. 43% of UK SMEs are looking to strengthen internal finance skills/ training as a priority area of investment. 
• Supplier diversification: to expand their supplier network, which requires resources and time, 88% of UK SMEs are making specific investments to mitigate the risk of future trade tariff instability. 
  
• Visibility on the landed costs: accurate inventory tracking, alongside a real-time map of suppliers and supply alternatives.

At the same time, customer demands are evolving more rapidly than ever. Supply chain visualisation should therefore work alongside forecasting and scenario planning for a set of ‘what if’ options to cater to different customer needs and outcomes.  

In a market experiencing volatility, SME's now more than ever need accurate, real-time data to provide insight into their entire organisation. Tariffs can shift quickly, so now more than ever, it is vital to have a strategy to handle fluctuations within your ERP. The smarter businesses are optimising, and this can be achieved by using the most up-to-date tools for proactive tariff management.

Today’s challenges in distribution

As we are aware from the report findings, many SMEs are questioning whether their ERP and financial systems deliver the real-time insight needed for fast decisions. With modern ERP technology, we can help manage your risk and global trade pressures. If you haven't already, you can read more on this topic in Chapter 1: findings from the report, which explains how you can streamline your supply chain and manage disruption risks. 

Supply chains are changing. Whether that's a result of geopolitical factors or demand flows, the right ERP will help you navigate the change, stay ahead of the competition and consistently provide value to customers.

'The Future of Distribution' addresses the main obstacles facing organisations and explains how your ERP system enables you to effectively navigate them.