Multi-Subsidiary Management: How NetSuite ERP Drives Global Business Success for Companies with Multiple Subsidiaries

    When dealing with subsidiaries in multiple countries, you may have to tangle with time-consuming and perplexing challenges. For instance, dramatic fluctuations in the values of currencies can impact your profit margin calculations, making it nearly impossible to compare performances between different subsidiaries. Plus, the intricacies of each jurisdiction’s tax regulations can make tax time a difficult juggling act, even for the most talented accountants.

    But with NetSuite, you get a streamlined, automated solution that makes it easier to tackle these and other stubborn challenges. In this article, we’ll dig into the benefits of NetSuite for a global, multi-subsidiary business, some best practices for international multi-subsidiary management, and some practical examples to best put NetSuite to work for your business.

    How NetSuite Benefits Global, Multi-Subsidiary Companies

    NetSuite is an efficient, powerful, silo-disintegrating tool, especially when unifying data from disparate business entities. Here are some of the specific benefits.

    Centralized Financial Management

    NetSuite brings all your financial data from each global entity together in a single platform. Instead of wondering how different business units are performing versus benchmarks, you can see financial performance across your organization with a few clicks.

    With this data, you can adjust accounting practices, invoicing, billing, purchasing, and more, no matter where your subsidiaries are domiciled.

    Real-Time Visibility and Reporting

    With NetSuite, no need to send scores of emails to managers worldwide, waiting hours for them to respond because of time zone differences. You get real-time data reports on your screen.

    Whether formulating a new strategy or preparing for a last-minute meeting, NetSuite's visibility and reporting capabilities give you business-critical data reports right away.

    Streamlined Procurement and Supply Management

    The procurement and supply chain ecosystem has never been so complex and fraught with pitfalls. But NetSuite helps you track, organize, and visualize even the most granular elements of your global supply chain.

    For instance, a manufacturer’s business unit in Europe may be able to save money by sourcing components from Nigeria instead of locally. You can use NetSuite to surface price and timing differences to help you to make the right call.

    Multi-Currency Management and Financial Consolidation

    Is it best to use the forex market to convert currencies from your global entities or a bank? How does $1 million made in France compare with $1 million generated in the U.S., especially after you factor in exchange rates and bid/ask spreads on the foreign currency markets? The answers to these and similar questions are clicks away with NetSuite.

    You don’t have to constantly navigate complicated financial consolidation processes while factoring in elements that change from border to border. You have all the data and calculations you need on your screen.

    Scalability and Flexibility

    A global business needs more freedom to pivot and grow than one with only domestic operations. NetSuite removes the shackles and growth ceilings that often restrict international companies.

    For instance, if you need to offshore some of your domestic operations, adding a subsidiary in a country with a lower cost of living, you can easily create a new business profile in NetSuite OneWorld. You can also speed up the process by modeling the new subsidiary’s settings after one that already exists, ensuring consistency and continuity across your enterprise.

    Best Practices to Optimize Multi-Subsidiary Performance

    Here are some best practices many global companies find effective when managing multiple subsidiaries across international borders:

    • Standardization of processes and controls: Avoid reinventing the wheel by customizing elements of your operations for every subsidiary. By creating standardized processes and controls, you give your managers and employees dependable consistency that makes their day-to-day jobs simpler.
    • Centralization of data and reporting: Give decision-makers deep visibility into operational factors by centralizing your data. They also get a single source of truth that supports more accurate, actionable decisions.
    • Alignment of business units and functions: In a globalized ecosystem, it can be easy for subsidiaries to end up doing their own thing. By aligning your business units with the same or similar strategies and functions, it's easier to conduct apples-to-apples performance comparisons, then implement improvements.
    • Continuous improvement and innovation: No matter how watertight a solution is, you still want to periodically review its performance to discover ways to increase profit ratios even more. By keeping an eye out for innovative ways of getting things done, you can uncover ways to make more while expending less energy and resources.

    For example, suppose issues at international shipping ports are driving your supply chain costs to a point that threatens the profitability of several items your company produces. Using NetSuite, you collect data from a global network of suppliers and shipping companies. You see that while some of the big players in the shipping industry are forced to increase their prices, some smaller companies have been able to run leaner and offer discounted rates.

    Your NetSuite dashboard surfaces these savings opportunities. You run a report highlighting the savings and present it to decision-makers in multiple subsidiaries. Even though adjusting their supply chain system will take work, the irrefutable data you harvest with NetSuite makes the decision easy. As a result, you’re able to keep multiple products in your portfolio—and keep your global subsidiaries afloat.

    Start Leveraging NetSuite for Subsidiaries Across Borders with GSI

    NetSuite enables efficient management of your global business network by unifying data and centralizing reporting and asset management. With the above best practices, you can ensure your business units align under a standardized, yet evolving, framework.

    With GSI, multi-subsidiary management in NetSuite doesn’t have to take up your entire schedule. The team takes care of your NetSuite implementation for you, ensuring you’re in a strong position to maximize performance across all business units. GSI's NetSuite experts invest the energy needed to understand the complexities of your operation. This way, your implementation supports your growth and unique goals. Reach out to learn more about the potential of GSI NetSuite services for your company today.