While Donald Trump has temporarily withdrawn the recent imposition of a 31% tariff on South African exports to the U.S., it is only a 90-day reprieve for now but it is likely that South Africa will face at least the minimum 10% rate going forward.
The question is what can businesses do to pivot and ensure they are getting the best efficiencies and productivity to offset the potential impact faced by may sectors who export to the US?
Businesses across industries such as agriculture, manufacturing, and mining face serious challenges to profitability and competitiveness, with every percent saving or increase in efficiencies making a difference for those facing new challenges.
Enterprise Resource Planning (ERP) systems are one such solution that have the potential to provide a powerful suite of tools to help businesses navigate these changes effectively.
“I want to assure our valued customers that we are deeply committed to supporting you through these challenging times, says Stuart Scanlon, Managing Director, epic ERP The recent imposition of a 31% tariff on South African exports to the U.S. presents significant hurdles for businesses across various industries, including agriculture, manufacturing, and mining. Our team understands the challenges that this brings, but we are here to help you adapt, comply, and stay ahead of your competition”, says Stuart.
Lets Unpack the possible ERP applications that could make a difference to businesses:
1. Cost Visibility and Margin Protection
ERP systems allow businesses to track and analyse landed costs, including tariffs, duties, shipping, and insurance. Real-time cost tracking supports proactive pricing decisions and margin protection strategies.
2. Supply Chain Agility
ERP offers full visibility across the supply chain, enabling businesses to:
- Identify alternative export markets or suppliers
- Optimise inventory management
- Reconfigure shipping routes to reduce costs
3. Compliance and Documentation
Automated generation of export documentation and integration with customs systems ensures compliance with international trade regulations, reducing delays and penalties.
4. Real-Time Financial Insights
ERP platforms provide dashboards and reporting tools that offer:
- Real-time updates on tariff impacts
- Cash flow forecasting
- Duty and tax exposure tracking
5. Scenario Planning and Risk Mitigation
Advanced ERP solutions enable forecasting and simulation of multiple tariff and trade scenarios. This helps businesses evaluate strategic responses, from price adjustments to production shifts.
6. Strategic Decision Support
ERP tools empower leadership to make informed decisions about cost optimisation, market expansion, and operational pivots based on real-time data and predictive analytics.
Business Tools That Make a Difference:
ERP Systems also incorporate Microsoft Business Central, Microsoft Dynamics 365 Supply Chain Management, and Epicor Kinetic – and so provide dynamic tools businesses need to navigate this volatile trade landscape by building efficiencies.
From real-time cost tracking and automated tariff classification to transparent pricing and advanced supply chain management, Epic ERP have a proven track record of assisting businesses to optimise, adapt, comply, and stay ahead of the competition and head off worrying economic headwinds.
