Why Select A Purpose-Built ERP System For Your Chemicals Company
Chemical manufacturers and distributors now understand that choosing any general-purpose ERP software for their businesses does not work. Chemical-centric ERP solutions bring value to the industry because they are designed to integrate and manage the processes, activities, and systems that are used to keep businesses running smoothly.
Operational Efficiency and Integration are Essential for Profitability
An ERP business management solution specifically developed for the Chemical Industry meets the specific formulation, labeling, storing, handling, and shipment needed. Due to the regulations and complexity of the industry; detailed reports for real-time, long-term analysis and decision-making are now crucial and truly elemental.
In the past, error-prone, cumbersome, and labor-intensive manual processes used up both time and money. A manual approach may have served its purpose in the past but in today’s dynamic and competitive marketplace it can seriously encumber productivity, profitability, and growth. In order to keep the bottom line in check failing to automate has proven hazardous to the health of a chemical company.
“In many chemical R&D labs, up to 50 percent of resources are spent on tasks such as documentation, data entry and analysis, and order or material management. Our experience suggests that bundling repetitive, non-innovative activities in dedicated units, integrating data and information management, and automating workflows can facilitate chemical companies to shift up to 50 percent of resources from repetitive tasks to innovative activities.” – Accenture
Functional ERP Software Requirements
The chemical industry has very specific functional requirements (Check out this eBook: Buying Business Management Software for The Chemical Industry) that are different from many standard manufacturing functions. Some of this chemical specific functionality includes:
- The ability to establish and maintain a formula management system
- A solution for reliable lot management and tracking
- Ability to handle batch and sizing scaling
- Formula calculations for intelligent Bill of Materials
- Manufacturing and inventory management in the unique quantity units of chemicals buyers
- Compliance testing modules for government and international regulations
- Reporting capabilities to meet compliance requirements
- Streamlined manufacturing, inventory, sales, and financial management and customer service accounting and integration
- A high degree of system flexibility to support a constantly evolving chemical business
- Forecasting capabilities for demand and demand cycles
- The ability to anticipate capital investments, including physical plant needs, to enable planning for growth
Having a chemical-focused manufacturing ERP solution helps provide distributors and manufacturers with a demonstrated technology solution that helps increase efficiency, productivity, and profitability.
Data is Foundational
But there is another aspect to leverage with a modern, purpose-built ERP system. That is that the ERP system collects information in one place, so a holistic view of the organization is possible, and with the addition of business intelligence tools, understanding can be garnered for informed decision-making. No matter the type or size of the chemical company, they will benefit from the real-time and total visibility of their entire operation – from manufacturing, quality, inventory, sales, to financials…with all critical information stored in, and retrieved from, a single dynamic database. Plus, important data can be incorporated from other systems and used with various business intelligence and analytics tools to gain insights for real-time, long-term analysis and decision-making.
“Operational efficiency and integration” is not just a slogan, it is what chemical businesses leaders can expect from an ERP system designed exclusively for the chemical industry. With a unified database, where a company can retrieve and analyze their critical information in real time, decision-making is enhanced and data is fully integrated. Simply – a chemical centric ERP solution helps build a more robust, productive, and efficient business which translates to higher profitability.