The Strategic Advantage of a Robust ERP Business Management for Chemical Manufacturers
Chemical manufacturers and distributors have always been among the first to deploy digital technologies extensively, using digital sensors and controllers to optimize production and control plant operations. In today’s business environment, chemical companies are also focused on digital initiatives that improve customer operations, manage compliance issues and control data management. It is now the norm that automated and efficient business management (a robust ERP) with process technology and market access will bring value to chemical companies.
Here are three areas in particular where chemical companies are gaining a strategic advantage with a robust ERP and digital investments:
A robust ERP business management software with web and mobile interfaces is enabling chemical manufacturing companies to reimagine their customer relationships. With online transactions providing faster and better data on how customers research, order, and shop for products, the data collected can now be analyzed to provide insights that have the potential to lead to better services and customer engagement. For chemical companies, the use of business management tools can affect how customers research colors or pricing to supplier ratings.
Regulations and Compliance
Chemical Industry regulatory requirements are ever changing and becoming more and more complex. Staying up to date and managing all the details in regards to Federal and State rules and regulations is a business imperative. The areas impacted can include chemical product and facility safety, security, and logistics. Just for starters, chemical companies are required to comply with OSHA (Occupational Safety and Health Administration) Hazard Communication Standards, GHS reports. And SARA Title III.
An ERP with industry-specific capabilities for chemical manufacturers and distributors provides real management over reporting processes as it enables compliance with regulatory and environmental requirements. An ERP business management software also supports any financial regulations that might impact organizational roles.
Data-Driven Decision Making
In our current business environment, important business decisions are either made in real-time, or with very short decision cycles. That is why chemical business leaders must have uninterrupted access to their data to support effective decision-making and actionable solutions.
Data is an essential ingredient in the well-being of a chemical company. For a chemical business to operate at peak efficiency and effectiveness, it needs a single source of truth including in-depth knowledge and insights regarding customers, suppliers, and solutions to support intelligent decision-making. This information can be used to improve plant operations and to make better-informed and faster decisions across the full range of a chemical company’s business processes.
According to a McKinsey & Company report, digital can give chemical companies the power to unlock more than $200 billion of new value by reducing cost to serve, improving pricing, and for fast movers, capturing growth from competitors.
These three trends are all supported by the harmonized data store that is both enabled and required with an effective chemical ERP system. Customer satisfaction, data-driven decision making, and managing and adhering to compliance with the ever-increasing chemical-specific regulations are essential ingredients in operating a successful chemical company. A robust ERP business management system enables growth and stability to chemical businesses worldwide.