Tariff volatility, shifting trade regulations and rising supply chain costs are forcing manufacturers to rethink how they manage global trade operations. For companies operating Foreign-Trade Zones (FTZs), manual processes and disconnected systems are becoming increasingly difficult to sustain as compliance requirements grow more complex and operational pressure intensifies.

Würth Elektronik, a global manufacturer of electronic components and printed circuit boards, faced this challenge firsthand. With manufacturing and distribution operations spanning Europe, Asia and the Americas, the company needed stronger tariff mitigation strategies capable of supporting a highly globalized supply chain environment.

As tariff exposure became more persistent, Würth Elektronik turned to QAD Foreign-Trade Zone (QAD FTZ) to automate compliance processes, improve inventory visibility and strengthen operational control without disrupting its proprietary ERP environment.

Managing Tariff Complexity Inside a High-Volume FTZ Environment

Operating a Foreign-Trade Zone requires precise inventory control and recordkeeping under U.S. Customs and Border Protection regulations. Every item entering, moving within or leaving the zone must be tracked accurately in near real time.

For Würth Elektronik, the operational challenge was amplified by its proprietary ERP system.

“Our ERP is highly specialized,” said Sara Farstad, Foreign-Trade Zone Administrator at Würth Elektronik. “If we were going to operate an FTZ successfully, we needed a solution that could work with our complexity and not create more manual work.”

Daily admissions files could include up to 600 lines requiring data adjustments. Harmonized System classifications required constant monitoring, while domestic and FTZ inventory were not easily distinguishable at the shipment level.

As tariff complexity increased, manual interventions created operational strain and compliance risk.

Würth Elektronik Selects QAD FTZ

After evaluating multiple providers, Würth Elektronik selected QAD Foreign-Trade Zone (QAD FTZ). The company was looking for more than a standard FTZ platform. It needed a solution capable of integrating within a highly specialized ERP environment while supporting the operational realities of a high-volume FTZ program.

Equally important was the consultative approach from the QAD Professional Services team. Rather than delivering a generic presentation, the team focused on Würth Elektronik’s specific operational challenges and how QAD FTZ could support its tariff mitigation and compliance goals.

“Other providers gave us a standard presentation,” Farstad said. “QAD FTZ showed us how the solution would work specifically for Würth Elektronik. They listened to our ERP challenges and helped us solve them.”

QAD | Redzone worked closely with Würth Elektronik to create structured link files and controlled data transfers between its proprietary ERP system and QAD FTZ.

Functioning as a compliant Inventory Control and Recordkeeping System (ICRS), QAD FTZ automates inventory tracking by zone status, value and movement while supporting annual reconciliation and customs reporting requirements.

The solution also automatically updates Harmonized System codes, flags obsolete classifications and supports structured admissions processing.

Automation Delivers Measurable Operational Relief

Before QAD FTZ, manual processing created a significant administrative burden across Würth Elektronik’s FTZ operations. High-volume admissions files required constant updates, while inventory tracking and classification management consumed valuable administrative time.

Today, Würth Elektronik uses structured upload tools within QAD FTZ to correct admissions data in bulk rather than line by line. Automation has helped reduce manual effort while improving inventory visibility, reporting accuracy and operational consistency.

“We may process hundreds of lines in a single admissions file,” said Farstad. “With QAD FTZ, we can update and resubmit in bulk instead of line by line. That alone changes the workload.”

Operational improvements include:

• Bulk admissions processing that reduces manual workload
• Automated HS code management that proactively flags obsolete classifications
• Near-real-time inventory visibility across FTZ and domestic inventory
• Improved shipment traceability and audit readiness
• Stronger compliance through structured inventory tracking and reporting

Rather than forcing ERP replacement or disrupting operations, QAD FTZ embedded automated FTZ management directly into Würth Elektronik’s existing supply chain architecture.

Turning FTZ Operations Into a Strategic Tariff Mitigation Advantage

By implementing QAD FTZ, Würth Elektronik transformed its Foreign-Trade Zone from a manual compliance requirement into a structured tariff mitigation strategy supported by global trade management software.

As more goods move through the FTZ, the company can defer or eliminate duties where applicable while maintaining service commitments to customers. Greater visibility into inventory movement and documentation requirements has also improved coordination between sales, logistics and compliance teams.

Clear visibility into whether orders consume domestic or FTZ inventory now allows sales and logistics teams to anticipate documentation requirements earlier in the process, reducing downstream disruption.

Automation has also improved confidence across the broader supply chain.

Würth Elektronik’s freight forwarding partner, experienced with multiple FTZ platforms, has recognized the operational strength of QAD FTZ and the responsiveness of the QAD | Redzone team, and has begun recommending the solution to other companies navigating tariff complexity.

Today, Würth Elektronik operates its FTZ with automation, structured compliance and greater operational confidence.

Key Benefits of QAD FTZ at Würth Elektronik

With QAD FTZ in place, Würth Elektronik has strengthened its tariff mitigation strategies while improving operational efficiency and compliance. Highlights include:

• Reduced manual workload through bulk admissions automation
• Improved visibility across FTZ and domestic inventory
• Automated HS code management and compliance monitoring
• Stronger audit readiness and shipment traceability
• Structured global trade management without ERP disruption

Würth Elektronik’s story demonstrates how manufacturers can modernize FTZ operations to better manage tariff volatility, strengthen compliance and protect margins in an increasingly unpredictable trade environment.

Read the full Würth Elektronik customer case study to learn more.