This document discusses how businesses can gain competitive advantages from disruptive changes like Brexit and currency fluctuations by ensuring their ERP systems are flexible enough to manage risks and seize opportunities. It emphasizes the importance of having an adaptable ERP system that can comply with changing legislation and support global operations. Selecting an ERP vendor that embraces new technologies and can rapidly deploy updates will help businesses benefit from disruption and stay ahead of competitors.

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Disrupted trading
relationships: Gain
competitive advantage from
disruptive change

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Disrupted trading relationships: Gain
competitive advantage from
disruptive change
§ Are you taking pre-emptive steps to ensure your ERP system lets you
manage risk and seize opportunities resulting from Brexit and changes
in globalisation?

3. 3
Just like the wind blows,
change comes
§ Global uncertainty is an ever attendant force shaping the operating
environment
§ The frequency and the impact of disruptive events seems to have
increased
§ Brexit and currency fluctuations are big issues for businesses riding the
wave of globalisation

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What can product
distributors do?
§ With risk comes opportunity for those that are prepared and who are
leading the way
§ Appropriate business systems help insulate businesses from disruptive
forces
§ Product distributors with the right systems can prosper in an ever
changing business climate

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Uncertainty and disruption
– the issues

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Brexit - the market
impact
§ The morning after the Brexit vote, the pound began a two-week slide to
below $1.29
§ It bottomed out at the $1.20 mark and a year or so on has stabilised at
around $1.30
§ Total 13% drop - a ‘market correction’ reflects loss of confidence in the
UK economy

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Brexit - risk and opportunity and the
coming changes to
international trade
§ The perceptions of risk stem chiefly from the ability to reconfigure UK
trade quickly
§ UK is going to have to negotiate trade deals with the rest of the world as
well as EU fast
§ Weaker pound, driving up prices for foreign imported goods, fuelling
inflation
§ UK goods cheaper and more attractive to the rest of the world is a
strong upside

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Software in wholesale
distribution - manual processes
and legacy
§ Some use a patchwork of discrete applications - spreadsheets and
accounting packages
§ Linked together with manual processes such as data import and export
§ Others may use legacy business management systems or custom
databases

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Software in wholesale
distribution – ERP
§ Some distributors may have invested in Enterprise Resource Planning
(ERP) software
§ Some are older legacy systems that have failed to keep in step with
technological change
§ Any firm without access to a good ERP system is likely to experience
inefficiency

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Unravelling the risk and
opportunity of Brexit and
currency fluctuations for
distribution businesses

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Deferring investment – Can
you afford to be indecisive
and lethargic?
§ Uncertainty causes deferred investment decisions or reduced
expenditure on new technology
§ Over an extended period, lethargy can set in. This could be
counterproductive
§ Older, legacy systems result in inefficiency, allowing competitors who
plan ahead to lead the pack

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Benefit by avoiding
deferred investment
§ Planning ahead is key - no one really knows but prepare with informed
guesswork
§ ERP system capable of dealing with changes in tax compliance and the
terms of trade
§ Don’t wake up too late to the fact that legacy ERP systems are not
flexible enough

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Adaptable ERP – Is your
ERP flexible enough?
§ Consider how easy is it for your ERP system to adapt and comply to new
legislation?
§ Currently, EU tax, VAT and customs legislation is harmonised, but could
change with Brexit

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Benefit from flexible
ERP
§ ERP needs to ensure tax reporting is compliant across all global
operating regions
§ Entity structure may need to adapt to support new tax registrations and
new item taxes
§ A shift in emphasis from intra-community EU sales and purchases -
imports and exports

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Currency fluctuations – Is
your business
benefitting?
§ For exporters, currency fluctuations often provide an export opportunity
§ UK has experienced significant growth in the export sector
§ Resulting from the 13% slide in the value of Sterling as a result of the
Brexit vote

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Benefit from currency
fluctuations?
§ Take advantage of global markets with ERP systems that support trade
in different territories
§ Multi-currency, languages, tax regimes and compliance with accounting
standards
§ Groups with subsidiaries in different countries, need a system that
delivers real-time consolidated financial position

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Globalisation U-turn – Can
you reconfigure your
business?
§ Globalisation is heavily influenced by new and emerging technologies
§ Developed companies heavily reliant on BRICs/developing countries for
manufacturing capacity
§ Result: They are now primarily importers of products

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Benefit from
globalisation U-turn
§ Is the trend of globalisation going to reverse with the election of Donald
Trump?
§ Appears to oppose globalisation and wants to develop US
manufacturing capacity
§ Choose ERP systems that cost effectively support the set-up of
manufacturing capacity elsewhere

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Disrupted ERP – Is your
business equipped to take
advantage?
§ Next generation technology is the next wave of disruption - and it’s
getting close
§ Artificial Intelligence (AI) software managing order processing
§ Internet of Things (IoT) connected vending machines placing orders for
restocking
§ Robots waiting on tables and one day soon, robots restocking for
vending

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Benefit from the next
wave of disruption?
§ Select an innovative ERP software vendor that invests and embraces
technological advancement
§ Avoid ‘bleeding edge’ of technology but be aware of what is coming
down the line
§ It’s important to be in a position to be able to adopt once it becomes
accepted as mainstream
§ Increasing technical complexity, availability without disruption to
operations makes outsourcing to online ERP partner the best option for
many

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Preparing your
business for change

22. 22
Consider flexibility,
support and planning
§ Ensure ERP systems can adapt to changes to international terms of
trade or tax compliance
§ Make sure your ERP software vendor is supportive in providing the
necessary platform for change
§ It’s important to be proactive and plan ahead and ensure that you are
prepared or risk falling behind your competitors

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Think about multi-tenanted,
insuring and locking
investment
§ Selecting a vendor that provides a ‘true’ multi-tenanted cloud platform
§ ERP is a substantial cost, so insure against volatility over the life of your
investment
§ Guarantees fixed costs, effectively locking your annual ERP investment
over 5 years

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Consider vendor capability
to support change
§ Think about vendor support for changes to international operations that
are enforced by changes to globalisation
§ Select a software vendor that moves fast to include advancements in
technology and who deploys rapidly
§ In ‘true’ cloud environments, the vendor is constantly upgrading ERP on
the fly so you always run on the most up to date version

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Avoid complacency and
act in good time
§ Don’t be complacent about the state of your ERP systems and their
ability to support upcoming macro changes
§ Change is coming - do something now while you still have time

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Some next actions
Find out if your systems are:
§ Ready to deal with change
§ Ready to take advantage of new international trade opportunities
Harden your product distribution business against uncertainty and
disruption. Contact us for an initial discussion today.

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About BlueBridge
One
§ BlueBridge One is a leading NetSuite 5 Star award winning business
solutions provider
§ Partnering with customers across EMEA since 2003 from UK and South
Africa offices
§ Integrates Wholesale Distribution alongside In-store, Online and M2M
operations
www.bluebridgeone.com
UK T: +44 1932 300 000
SA T: +27 10 500 8192

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BlueBridge One
www.bluebridgeone.com