Enterprise Resource Planning (ERP) systems cover multiple software applications. They include platforms and tools for financials, supply chain, procurement, inventory, order management, purchasing, project management, manufacturing, and budgeting. Therefore, it’s of paramount importance to ensure that your corporate foreign exchange (FX) data is as accurate and reliable as possible.

• Why is a high-performing ERP system important?
• Why ERP systems can only be as effective as the quality of its data.
• 3 reasons why FX data is key to optimal ERP performance.
• Why the world’s leading organizations use OANDA FX rates for their ERP system.

An effective ERP system provides several invaluable business benefits.

1. It drives accuracy and uniformity with a single source of truth

A strong ERP system is one that unifies all data and homogenizes format, terminology, and process. Additionally, it forms the enterprise-wide foundation from which all modules operate, and both creates and maintains one master database. As a result, different departments, business units, and offices all use the same core data.

2. It raises productivity and saves time with a smoother workflow

An optimal ERP system enables a workforce to avoid wasting enormous amounts of time retrieving data from various sources. It also helps ensure that data is up to date and correct and that there’s no data duplication. Additionally, it reduces the number of data retrieval bottlenecks.

3. It supports speedy, streamlined collaboration

In the modern age, all an organization needs to connect an ERP system across cities, countries, and continents is the internet. Cloud-provisioned ERP surpassed on-site infrastructure long ago in terms of business utility and value. As a result, collaboration is easier via a unified workflow, with all security or feature updates occurring at the same time, anywhere in the world.

To achieve the aforementioned outcomes, data quality must be on point. ERP output depends on data input. If any data source is not of the highest quality and reliance, it will compromise performance. A common occurrence is that, in the absence of a high-quality data point that comes from a single source of truth within an organization, employees must come up with an alternative.

This is the kind of scenario that gives rise to different databases, siloed data, and conflicting approaches across departments, units, offices, and companies within a larger enterprise.

Another common issue is that organizations focus on data precision when it is entered into their systems but overlook the benefits of keeping it up to date, and the importance of updating FX data daily. In the current business landscape, with market volatility increasingly a rule rather than an exception, data can quickly become out of date.

The consequence is that businesses are making decisions with old data that is no longer reflective of true market conditions. Therefore, to optimize ERP performance, data must be accurate at point of entry and constantly kept up to date. No more is this point relevant than for foreign exchange (FX) data, as currency figures can and do change by the second.

The use of highly precise, timely FX data supports optimal ERP performance in a number of ways.

1. Currency exposure is high for modern businesses

Organizations, whatever the size and industry, are usually exposed to foreign currencies to one degree or other. However, for many, they operate on an international or global scale, with commercial presence in multiple markets and supply chains that involve numerous jurisdictions and currencies.

The greater the exposure, the more that companies require FX data, often across many functions and business use cases. These include supplier payments, salaries, providing quotes in multiple currencies. In addition, strategic finance, treasury, and accounting teams require highly precise historical FX data for a range of applications, including tax returns, risk planning, and financial statements.

Reliable, accurate FX data helps companies to navigate currency market exposure and support precise financial planning and execution across all functions.

2. It is up to date with actual market conditions

The FX market can rise or fall very quickly. Financial market news such as an important Federal Reserve interest rate decision or geopolitical event can move exchange rates in an instant. However, many companies still use data that is updated just once a month. Given that FX rates change frequently, it means that they are using data that's out of date. Use of inaccurate FX data can complicate currency risk management and lead to exchange rate financial losses.

From e-commerce payment display currency conversion to supplier payment agreements, and from rolling financial forecast updates to accurate headcount planning capacity, organizations require FX data that they can trust day in and day out.

3. It supports market growth and expansion into new markets

Only precise FX data can provide a true picture of financial status at any one time. It helps strategic finance teams identify cash flow capabilities and problem areas when other currencies are involved. Additionally, it enables companies to avoid any unforeseen surprises that inaccurate exchange rate data can fail to account for.

OANDA partners with many of the world’s foremost enterprises to provide the gold standard in historical and live exchange rate data.

We provide access to over 31 years of historical data for over 38,000 forex pairs and rates from over 200 currencies, cryptocurrencies, commodities and precious metals. As a market maker, OANDA has direct access to real-time FX rates so you can be assured that the data we provide is always accurate and reliable.

We partner with major ERPs to streamline the integration process and make the rates upload process seamless for you. Our partners include Oracle, Microsoft, SAP and Sage Intacct.

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