Local ERP & Multinational Corporation

By: Andrew Karasev

Multinational Corporation usually has to consider two major criteria in overseas subsidiary MRP system selection.  First is its integration with Corporate ERP, deployed in the Headquarters and second – localization status of the proposed ERP, where localization usually assumes two aspects – compliance to tax legislation and local language support.  Then international environment may be very diversified, however you will recognize the pattern – when you have manufacturing facility in the small or mid-size country – then tax legislation is usually more “standard", than if you have production plant in the large country.  Consider Brazil, for example – it has unique tax requirements and localization from the tax compliance stand point is usually complicated – you should do your homework in the selection.  And, in the case of corporate business, the ERP selection policy usually requires international ERP brand, such as SAP, Oracle or Microsoft Business Solutions.  Let’s come to SAP Business One details and options.

  • Multilanguage in one company.  This feature allows your controller from the headquarter “surf" your overseas ERP through remote connection by simply switching Brazilian Portuguese to US or British English.  Whatever happens with your ERP support partner in Sao Paulo, Rio de Janeiro or any unexpected accounting personnel turnover – you will be in control, because you will know how to use your English screens
  • Tax compliance.  SAP Business One is localized for Brazilian tax code and the tax engine as SAP believes will also be adopted for another large country, such as India with the same technology approach and programming schema.  In our opinion SAP used abstract approach, when it designed the solution, which is flexible and adaptable with multiple tax-challenging markets criteria in the design.
  • Integration.  Virtually from any report screen you can export your transactions in scope and it could be done in Excel, tab delimited text, etc.  Then SAP Business One has integration tool to mySAP/R/3 – in case if your company uses SAP in the Headquarters.
  • Licensing.  SAP Business One uses All-in-one license type, when you pay fixed price per named user (you can get CRM module only users at half of the regular all-in-one license prices)
  • Database Platform.  Microsoft SQL Server is reasonably priced plus if you have open license with Microsoft for your company – you may use this advantage.
  • Microsoft Office.  SAP Business One is tightly integrated with MS Office – it emails through MS Outlook client of local workstation, exports data to Excel, etc.  Currently SAP has joint project with Microsoft – Mendocino – to integrate SAP R/3 with Microsoft Office platform.  SAP Business One is probably ahead in its original integration technology.
  • Brazilian version availability.  It is available since February 2006.
  • SAP Business One SDK.  If you need custom tuning & programming, coming beyond the scope of user-friendly interface modification & customization – you should look for SAP Business One SDK customization partner, who is licensed to program SAP Business One SDK
  • Competition.  Localized: Portuguese translated and tax tune ERP versions have also Microsoft: Microsoft Navision/Dynamics NAV, Microsoft Axapta/Dynamics AX (since April 2006) (please be sure that Microsoft Solomon/Dynamics SL and Microsoft Great Plains/Dynamics GP are not supported by Microsoft Business Solutions in Brazil), Oracle Financials/Applications/E-Business Suite, SAP mySAP and SAP all-in-one.  Plus you may need to check with regional ERP vendors, such as Microsiga
  • ERP Implementation Partner selection.  This is the question of how comfortable you feel yourself on the local or regional IT consulting market.  Typical is the case when ERP implementation company from the Headquarters side subcontracts local ERP implementer in Brazil – or you can do the same – simply by selecting mid-size or small international ERP consulting firm, specializing in international business and present in USA/Europe and Brazil at the same time.

Please do not hesitate to call or email us: USA 1-866-528-0577, 1-630-961-5918 help@albaspectrum.com

Enterprise Information Systems
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