Portuguese Manufacturing Goes Lean: ERP to Tackle EU and US Tariffs

Business Apr 15, 2025 18 Add to Reading List

Portugal’s manufacturing sector plays a crucial role in the country’s economy, contributing significantly to both domestic and international markets. However, with the ongoing tariff increases between the EU, the US, and other countries, manufacturers are facing heightened challenges, including rising raw material costs, supply chain disruptions, and an increase in operational expenses. As these tariff-related costs threaten to erode profitability, manufacturers must find new ways to streamline their operations and protect their bottom line.

One solution that is gaining traction in Portugal’s manufacturing industry is Enterprise Resource Planning (ERP) software, particularly Odoo ERP. Odoo offers a suite of tools that help manufacturers reduce inefficiencies, optimize procurement, and manage costs more effectively in the face of rising tariffs. In this blog, we will explore how Odoo ERP is helping Portuguese manufacturers adopt lean practices and tackle the financial impact of EU and US tariffs. We will also look at how partnering with an Odoo Implementation Partner in Portugal can further enhance these efforts.

1. The Impact of EU and US Tariffs on Portuguese Manufacturers

The imposition of tariffs between the EU and the US has had a significant effect on Portuguese manufacturers, especially those involved in exporting goods. The consequences include:

Increased Raw Material Costs: Rising tariffs on imported raw materials, such as steel, aluminum, and other essential manufacturing components, have driven up the cost of production. Manufacturers are now required to spend more on sourcing materials, directly impacting their profit margins.
Supply Chain Disruptions: The changing tariff landscape has caused global supply chains to become more unpredictable, leading to delays and increased costs associated with shipping, storage, and inventory management.
Competitive Pressures: As tariffs raise the cost of manufacturing, Portuguese companies find it challenging to maintain competitive pricing in global markets, particularly when competing with manufacturers from countries not affected by similar tariff regulations.
Uncertainty and Financial Planning Challenges: The fluctuating nature of tariffs and trade policies creates uncertainty for manufacturers when it comes to pricing strategies, forecasting, and long-term planning.

With these challenges in mind, manufacturers in Portugal need a solution that helps them optimize their operations and stay competitive in a global market affected by tariff fluctuations.

2. How Odoo ERP Helps Portuguese Manufacturers Tackle Tariffs and Adopt Lean Practices

Odoo ERP provides a comprehensive solution for manufacturers, helping them streamline processes, reduce inefficiencies, and optimize their operations to manage rising costs. Here's how Odoo can assist:

Streamlined Procurement and Supplier Management: Odoo’s procurement module helps manufacturers automate and optimize the sourcing of raw materials. The system provides real-time data on supplier performance, material costs, and delivery timelines, enabling manufacturers to make more informed decisions. By managing suppliers efficiently, businesses can reduce costs, mitigate the impact of tariffs, and avoid supply chain disruptions.
Real-Time Inventory Management: Odoo’s integrated inventory management tools provide real-time visibility into stock levels, order quantities, and material movements. This helps manufacturers reduce excess inventory, minimize storage costs, and avoid stockouts, ultimately enhancing operational efficiency. By optimizing inventory, manufacturers can better cope with the unpredictability of global supply chains and tariff-induced cost fluctuations.
Cost Control and Budgeting: Odoo’s financial management tools help manufacturers track expenses related to tariffs, raw materials, and production. With real-time budget tracking, manufacturers can identify areas where costs are escalating due to tariffs and take proactive steps to mitigate these increases, whether by negotiating better terms with suppliers or adjusting production schedules.
Lean Manufacturing Processes: Odoo’s manufacturing module allows companies to implement lean practices by automating production workflows, reducing waste, and improving efficiency. With tools like work order management, production scheduling, and quality control, Odoo helps manufacturers optimize their processes, lower production costs, and maintain product quality despite rising material prices.
Multi-Currency and Multi-Tax Support: For manufacturers exporting goods globally, Odoo supports multi-currency transactions and multi-tax jurisdiction management. The system ensures that manufacturers can manage international trade efficiently, with automated calculations for exchange rates, tariffs, and taxes, ensuring compliance and accurate financial reporting across different regions.
Detailed Reporting and Analytics: Odoo’s powerful reporting tools allow manufacturers to generate detailed reports on financial performance, inventory levels, production efficiency, and supplier costs. With these insights, manufacturers can make data-driven decisions to cut costs, optimize operations, and improve profitability.

3. The Role of an Odoo Implementation Partner in Portugal

While Odoo provides a robust set of tools, many Portuguese manufacturers may need customization to address their specific challenges related to tariffs, supply chain management, and procurement. This is where an Odoo Implementation Partner in Portugal can provide essential support. Odoo consultants work closely with businesses to ensure that the ERP system is tailored to meet the unique needs of the manufacturing sector.

Here’s how an Odoo implementation partner can assist:

Customizing Procurement and Inventory Management: An Odoo consultant can help customize procurement workflows to handle the complexities of sourcing materials that are affected by tariffs. They can also tailor inventory management processes to ensure that manufacturers can efficiently manage inventory levels and reduce excess stock.
Integration with Existing Systems: Many manufacturers already use third-party software for accounting, customer relationship management (CRM), or logistics. An Odoo implementation partner can integrate these existing systems with Odoo, providing a seamless, unified platform for managing all aspects of manufacturing operations.
Customized Reports and Dashboards: Odoo consultants can design custom dashboards and financial reports that track key metrics, such as tariff-related cost increases, production efficiency, and supplier performance. These tailored insights help manufacturers make informed decisions to reduce costs and maintain profitability despite rising tariffs.
Automation of Production and Supply Chain Workflows: Odoo consultants can help design automated workflows for production scheduling, quality control, and supplier coordination, improving efficiency and reducing manual errors. Automation of these processes enables manufacturers to implement lean practices and optimize their operations.
Ongoing Support and Optimization: After the implementation of Odoo, an Odoo implementation partner provides ongoing support and system updates to ensure that the system continues to meet the evolving needs of the business, especially as tariffs and global trade regulations change.

4. Key Benefits of Using Odoo ERP for Portuguese Manufacturers

By adopting Odoo ERP, Portuguese manufacturers can unlock several key benefits that help them manage tariff challenges and implement lean practices:

Reduced Operational Costs: Automation of procurement, inventory management, and financial reporting allows manufacturers to reduce labor costs and improve operational efficiency, helping to offset the impact of rising tariffs.
Increased Flexibility: Odoo’s customizable features and modules enable manufacturers to adapt quickly to changes in the market, including tariff adjustments and supply chain disruptions.
Improved Decision-Making: Real-time data and customizable reports provide manufacturers with the insights they need to make informed decisions about pricing, procurement, and production strategies.
Enhanced Profitability: By streamlining operations, reducing waste, and improving procurement efficiency, Odoo helps manufacturers maintain healthy profit margins even in the face of rising material costs and tariffs.
Scalability for Growth: As Portuguese manufacturers expand their operations and take on more complex projects, Odoo’s scalable architecture ensures that the system can grow with the business, supporting larger operations, more suppliers, and increased global trade.

5. Conclusion

The rise of EU and US tariffs presents significant challenges for Portuguese manufacturers, but Odoo ERP offers a comprehensive solution to help businesses streamline operations, optimize procurement, and cut costs. By automating key processes and providing real-time financial insights, Odoo helps manufacturers stay competitive despite rising material costs and supply chain disruptions. Working with an Odoo Implementation Partner in Portugal ensures that Odoo is fully customized to meet the unique needs of each manufacturer, allowing them to implement lean practices, improve efficiency, and drive profitability. With Odoo, Portuguese manufacturers can successfully navigate the complexities of global trade and continue to thrive in an increasingly challenging environment.