Europe plays a large role in global trade, as one of the largest exporters in the world, Europe is in a prime position to do business with. It is the world’s largest exporter of manufactured goods and services. In itself, it is the biggest export market for about 80 countries. This market became attractive due to the millions of consumers in European countries, additionally, the market has transparent rules and regulations. It is also the most open market for developing countries to trade with. Europe is deeply integrated into global markets, with modern transportation and communications, buying, and selling products is now easier, granting European companies of all sizes a low barrier of entry to trade outside Europe. 

Due to its booming export performance, European businesses need to have a first-class solution established for their enterprise resource planning. Finding a suitable ERP solution to support business planning, budgeting and forecasting are crucial for the success and future of an organization. With economic conditions not always being predictable, strategic goals need to be based on a flexible plan where planning processes can be made to a strategic plan. Of course, continuous planning and updating need to be met in the event of an unforeseen incident such as the coronavirus crisis. 

What’s the difference between Planning, Budgeting, and Forecasting?

A budget can be defined as an outline of an organization’s financial plan within a set amount of time. In comparison, forecasting is a report illustrating whether the company is meeting their short-term goals and if they are on track to achieve their long-term goals. Planning falls into the process of determining the future customer demand for products while minimizing any excess inventory, similar to forecasting but other factors such as distribution and inventory are considered. Budgeting often needs adjusting in the case a goal is not attainable due to ever-changing markets. Budgets should be flexible and updated quickly according to the current markets. Planning ensures that all parties in the supply chain have confidence in the numbers and working together to achieve a particular goal. 

Although they are different they are interconnected processes that need to exist side-by-side to support an organization’s livelihood and financial well-being. An example is when short-term and long-term forecasting and demand can be utilized to create and update a company’s budget. 

The importance of planning, budgeting, and forecasting

When a company has strong planning, budgeting, and forecasting processes they are most likely to obtain accurate financial analytics and financial forecasts. In this scenario, a company benefits from a huge competitive advantage against other companies in the industry. When there is top-notch accuracy, a business operates with more accuracy. In return, a higher ROI is almost guaranteed. There is also the factor of possible market disruptions and shifting trends. Companies need to be able to pivot quickly therefore creating a flexible and effective plan is key to avoid falling behind other competitors.

These plans and financial targets are based on data, therefore it is a must that it is accurate for the creation of future plans.

When an organization embraces data and analytics when creating plans and forecasting reports there is an elevated component to strategic decision making that will, in turn, be rewarded with even better results and timely forecasts. The tools offered by an ERP system can save time, reduce errors, enhance collaboration and develop an overall more disciplined management system. 

 In more specific terms, a modern ERP like NetSuite can help companies to:

– Update and pivot plans and forecasts according to new threats and opportunities. 

– Identify, analyze and predict  the result of changes as they occur.

– Strengthen correlated plans such as operation and financial plans

– Predict and plan for better cash flows 

In light of current times, the COVID-19 crisis showcases its effects on supply chains. Companies have now come to terms with how challenging it can be to plan and pivot supply planning when disruptive one-in-a-million events occur. In reality, less severe events occur often in which supply chains are undermined and legacy tools can no longer keep up with the task. 

The Digital Transformation

A way European businesses can begin the digital transformation of their operations is through implementing an ERP system such as NetSuite. Through a digital transformation and optimizing job functions through an integrated cloud-based system, budgeting, planning and reporting will be a smooth process, setting the foundation in the European market and beyond while also meeting business plans. Not only does it facilitate said processes but because they are correlated NetSuite makes it easy for the 3 to be integrated for optimal performance. 

How can NetSuite be the force to propel your business into digital transformation?

The advanced solution can provide your business with CRM, eCommerce, accounting, financial planning capabilities, and more! To be more specific, NetSuite ERP can facilitate:

Business Budget and planning 

Budgets are no longer a burden through more accurate budgeting, reduced risk, and automation of processes.

Reporting and Analytics

Build custom dashboards that provide a specific, straightforward view of company performance. The dashboard is fully customizable and can be created with a list of criteria that is necessary for a business. These reports also help businesses with optimal financial forecasting.  

Workflow & Automation

Automate repetitive processes and build a comprehensive workflow, allowing for reduced time and confidence in reports.  

When making the digital transformation you are improving profitability while also minimizing the risks that are more possible when budgeting with spreadsheets. Finance departments can leverage the data from the system to arrange multiple processes to ensure that critical steps are not missed.

Due to the high economic activity, European businesses cater to a large market, exporting to many countries. The supply chain for these businesses based in Europe need to be impeccable to reach financial goals. The planning, budgeting, and forecasting process need to be held to the highest standard for optimal performance, which is why there is such a demand for an integrated and cohesive ERP solution. NetSuite planning, budgeting, and forecasting enable organizations to facilitate these processes with market-leading features in reporting, planning, and modeling in an all-in-one ERP system.

Why choose ERP Buddies for your Implementation?

ERP Buddies is an Official Oracle NetSuite Solution Provider with diverse experience in implementing NetSuite ERP for multiple wholesale distribution companies.

With offices in the U.S, Canada, Philippines, Europe, and India, our experts are accessible globally and make it their priority to create a smooth and positive experience for clients. Our experts assist clients throughout the entire implementation process, with on-site support and consultation, along with additional assistance in customizing your system to guarantee it meets your business needs.