Large companies learned long ago how to grow their markets and their profits by expanding internationally. For midsized enterprises though, international trade remains a constant uphill battle. Managing customers, suppliers, and customers across national frontiers can be costly and complex, especially when attempted with the constrained resources and outdated software programs.
In 2016, a survey by OFX (formerly USForex) revealed that 96 percent of small and medium-sized business are confident in conducting business overseas. More than half of the survey respondents, said they already have international customers, suppliers or vendors outside of the U.S.
“Going global is no longer an option for successful small and medium businesses — it is a strategic imperative,” said Karin Visnick, former head of North America, USForex.
Are you ready to take on the world, but concerned whether your business management tools and resources are up to the task? This blog post will take a look at the challenges facing large organizations today and the tools you need to garner success.
Challenges to expansion
Beyond the complexity of dealing with multiple languages and currencies for daily transactions, globalization presents risks of non-compliance with local rules, tax regulations and industry practices. With multiple entities, reporting and consolidations can become burdensome and slow. Optimizing inventories across multiple warehouses is a challenge for domestic companies, and the task is exacerbated when a business crosses borders. Plus, there are the complexities of managing both a global supply chain and workforce.
Many companies are using applications that are ill-equipped to handle these challenges, leaving midsized organizations looking for solutions.
Tools for passport to success
In order to achieve success long term, your organization needs a business management system designed with global operations in mind is a necessity. When selecting a tool, please consider the following questions:
Is the tool capable of helping my mid-sized business tackle everyday challenges we are facing whiling growing in a global market?
Can I access data and insights from multiple customers, suppliers and contractors across different regions in real-time and on the go?
Will this system help me scale a profitable international business?
Can I manage multiple currencies, legislations, and communicate in different languages?
Now you need to convince your executive team that a new business management solution is imperative to your company growth. Here are five tips on how to convince your organization it is time for a new solution.