WÜRTH ELEKTRONIK

The Challenge:

ESCALATING TARIFF COMPLEXITY OUTPACES MANUAL TRADE PROCESSES

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.

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

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.

“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 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.

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

The Solution:

AUTOMATED GLOBAL TRADE MANAGEMENT WITHOUT ERP DISRUPTION

After evaluating multiple providers, Würth Elektronik selected QAD Foreign-Trade Zone (QAD FTZ), delivered by QAD | Redzone.

The decision was driven by two factors: integration capability and consultative partnership.

“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 design structured link files and controlled data transfers between its proprietary ERP system and QAD FTZ. When large item master uploads revealed missing data elements, the QAD FTZ team collaborated with Würth Elektronik to resolve issues while maintaining regulatory compliance requirements.

QAD FTZ functions as a compliant Inventory Control and Recordkeeping System, enforcing near-real-time tracking of inventory by zone status, value and movement. The solution automatically updates Harmonized System codes, flags obsolete classifications and maintains cumulative receipts and adjustments required for annual reconciliation.

Automation delivered measurable operational relief. Instead of manually editing hundreds of lines in daily admissions files, Würth Elektronik now uses structured upload tools within QAD FTZ to correct data in bulk and resubmit accurately. Automated HS code management moves affected SKUs into an incomplete queue, eliminating the need for manual code audits.

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

Rather than forcing ERP replacement or system disruption, QAD FTZ embedded structured global trade management capabilities directly into Würth Elektronik’s existing supply chain architecture.

The Benefits:

AUTOMATION AND DEFENSIBLE COMPLIANCE THAT PROTECT MARGINS FROM TARIFF VOLATILITY

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.

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.

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.

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.

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

“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.”

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 the solution to other companies navigating tariff complexity.

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.