Customer Stories
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Würth Elektronik

Würth Elektronik

Würth Elektronik streamlines global trade with QAD Foreign-Trade Zone (FTZ), automating compliance, reducing tariff risk and integrating with its ERP.

Industry
High Tech
Products
Electronic components and printed circuit boards
Solutions Utilized
QAD Foreign-Trade Zone (FTZ)
Headquarters
Watertown, SD

About Würth Elektronik

Global manufacturer würth Elektronik regains control in a volatile trade environment

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Würth Elektronik is a global electronic circuit board component design and manufacturing company serving customers across Europe, Asia and the Americas. Its portfolio includes tens of thousands of components used in products ranging from industrial equipment to consumer electronics. The company’s U.S. operations serve as a distribution hub for finished goods while supporting research and development for custom magnetics.

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Global trade is embedded in Würth Elektronik’s business model. Manufacturing is distributed across international locations, and products move continuously across borders before reaching customers. When tariffs shift in one region, sourcing decisions, customer commitments and cost structures are affected worldwide.

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As trade policy volatility increased and tariff exposure became persistent rather than temporary, Würth Elektronik recognized the need for stronger, technology-driven tariff mitigation strategies supported by structured global trade management software.

The Challenge

Escalating tariff complexity outpaces manual trade processes

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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. Errors can result in penalties, audit exposure or even loss of FTZ privileges.

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Würth Elektronik activated its Foreign-Trade Zone to strengthen tariff mitigation and protect customer relationships, but the operational reality was complex.

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The company operates on a proprietary ERP system designed specifically for its business. While effective for internal operations, it was not built to natively support structured FTZ compliance workflows or automated customs reporting.

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“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.”

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Daily admissions files could include up to 600 lines requiring data adjustments. Harmonized System classifications required ongoing monitoring. Domestic and FTZ inventory were not easily distinguishable at the shipment level. As tariff complexity increased, manual interventions created operational strain and compliance risk.

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Würth Elektronik needed FTZ management software capable of integrating with its ERP environment, automating compliance processes and scaling with transaction volume without disruption.

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

Sara Farstad, Foreign-Trade Zone Administrator, Würth Elektronik

The Solution

the solution to other companies navigating tariff complexity.

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Today, Würth Elektronik operates its Foreign-Trade Zone with automation, structured compliance and execution confidence. QAD FTZ enables the company to convert tariff volatility into defensible global trade management — transforming complexity into competitive advantage.**

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“With QAD FTZ, I can go into the system and find answers myself. We maintain a high level of accuracy and compliance without constant manual intervention.”

The Benefits

Automation and defensible compliance that protect margins from tariff volatility

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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.

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Stronger Tariff Mitigation and Margin Protection

As more goods flow through QAD FTZ, Würth Elektronik can defer or eliminate duties where applicable while maintaining service commitments to customers. Rather than absorbing unpredictable tariff costs, the company now manages exposure within a controlled operational framework.

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

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Automated Compliance Without ERP Disruption

Functioning as a compliant Inventory Control and Recordkeeping System, QAD FTZ embeds automated global trade management into Würth Elektronik’s proprietary ERP environment without forcing system replacement.

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Operational improvements include:

  • Bulk upload capabilities that replace manual line-by-line admissions updates, even for files containing hundreds of entries
  • Automated Harmonized System code updates that flag obsolete classifications proactively
  • Near-real-time tracking of inventory by zone status and value to support CBP reporting and annual reconciliation
  • Improved shipment traceability through structured warehouse and location data integration

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“With QAD FTZ, I can go into the system and find answers myself,” said Farstad. “We maintain a high level of accuracy and compliance without constant manual intervention.”

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Increased Confidence Across the Supply Chain

**Automation and structured reporting have improved coordination not only internally, but also with external partners. 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

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