InterDyn CFO Consulting

5 Concerns for International Distribution and how Microsoft Dynamics NAV can Help

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In today’s ever flattening world more and more companies are delving into the international distribution market. While it has become a lot easier to thrive in the international marketplace, there are still a few concerns that, without the right tools, can cause a company to struggle to compete. The 5 most common concerns facing international distribution companies today are:

  1. Multiple Languages:

All international distribution companies buy and or sell in multiple countries and unfortunately every country doesn’t speak the same language. Because of this it is essential for an international business to communicate with its customers and vendors in their native languages. This insures that all business transactions can be understood and agreed upon in the most efficient way possible. Microsoft Dynamics® NAV can help with multiple languages in two ways:

  • All system documents and reports can be printed in over 50 languages including multiple dialects of many languages. This allows a Spanish company to deliver a sales invoice completely in Dutch to a Dutch customer or send a purchase order in German to a German vendor, ensuring that there is no miscommunication between the business and its associates.
  • All system windows can be presented in the same 50 languages and dialects. Say your Spanish based company hires a salesperson to cover a territory in France and the new salesperson would prefer to see the system in French. This can be easily accomplished by assigning a base language of French to the salesperson’s system user account and while the rest of the company works in Spanish the new salesperson can comfortably work in French.

Both of the above functionalities are easy to implement and allow for efficient communication with your business associates.

    2.    Intercompany Transactions & Chart of Accounts Consolidations:

If your company has multiple subsidiaries and you buy from or sell to those subsidiaries, you know how hard it can be to process intercompany transactions and consolidate your subsidiaries’ chart of accounts. Combine this with the complications that arise if some of your subsidiaries are in different countries and you may find that you employees are spending inordinate amounts of time processing intercompany transactions. With Microsoft Dynamics NAV these difficulties have been removed. Even if your subsidiaries use multiple currencies and/or multiple languages, in Microsoft Dynamics NAV, you can process intercompany transactions in the same fast, simple way that any normal sales order, purchase order or credit memo is processed and a chart of accounts consolidation can be completed in a few simple steps. This ease of data synchronization between the parent company and its subsidiaries allows for more up to date data when managers need it and doesn’t burden users with time consuming processes in order to input or generate the data. 

    3.    Multiple Currencies:

As of right now there is no one single currency that all countries use when buying and selling goods. Although this may happen sometime in the future, it doesn’t look like it will happen anytime soon. In the meantime international distribution companies will need to continue to buy and or sell in multiple currencies and without a tool that tracks exchange rates and automatically converts currencies, it can be a daunting task for users to maintain. Fortunately Microsoft Dynamics NAV can do this for you, allowing you to track the historical exchange rates for any currency, providing a simple process to update your exchange rates for a single currency, multiple currencies or for all currencies at once, as well as automatically converting currencies for you at the time a transaction is processed. For instance, what if you need to pay a Swiss vendor in Euros but your company’s main currency is in US Dollars? With Microsoft Dynamics NAV you can make that payment easily and, based on your system’s current exchange rates, the conversion from US Dollars to Euro’s is automatic, no user calculations needed. The multi-currency functionality in Microsoft Dynamics NAV is very easy to use and will save your employees a lot of valuable time, freeing them up to perform other high priority tasks.  

    4.    Tracking Landed Costs:

Accurate landed costs are the key to calculating a company’s profitability. With the myriad of potential costs associated with international shipping, such as customs fees, port fees, brokerage fees, shipping charges and fuel surcharges to name a few, it can be a major challenge calculating the total landed costs of your goods. With Microsoft Dynamics NAV you can use Item Charges to add cost to your inventory after the items have been received and even after the items have been sold, giving you the ability to calculate the actual landed costs of your goods without manual calculations on separate spread sheets. The process is as easy as entering a new vendor invoice and selecting which received items should incur the additional costs. You can even have the system automatically calculate and apply the additional cost amount to each item. What could be easier?

    5.    Use of Item Tracking Technology (Barcodes and/or RFID):

In this day and age it is becoming imperative to use some form of tracking technology to make it easier for your customers to buy and sell your products as well as for you to track movements of your products while they are being transported to and from your vendors and customers as well as movements inside your own warehouses. Barcodes and RFID tagsare two technologies that are easy to implement in Microsoft Dynamics NAV and allow you to keep track of where your goods are at all times. Especially with international transactions, deals can be won or lost based on whether you offer barcodes and or RFID tags on your products. With Microsoft Dynamics NAV you can feel at ease knowing that you have these requirements covered so you can instead focus on high value return processes such as product development and marketing.

While all of these concerns by themselves can be a challenge to overcome individually, combining them all can be daunting. With Microsoft Dynamics NAV you can handle them all with ease, allowing your international distribution company to flourish in the ever expanding international marketplace.

Interested in solving your international business process issues with Microsoft Dynamics NAV? Contact us here at InterDyn-CFO Consultingto learn more. InterDyn-CFO Consulting is a leading Microsoft Gold Certified Partner dedicated to the implementation, training and support of the Microsoft Dynamics line of products including Microsoft Dynamics NAV, Microsoft Dynamics GP and CRM. We are headquartered in Orlando, Florida and have a new office in Tampa, Florida. 

By  InterDyn-CFO Consulting, a leading Orlando, Florida Microsoft Dynamics Partner

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