Chemical landscape confronting a lot of challenges due to the complexity involved with manufacturing. The process-centric industry standing at the cusp of legacy requires tracking and managing inventory, actions, dates, compliance, and financials. When data entry and manipulation are done in spreadsheets with a non-integrated approach, they create confusion and are inefficient when real-time data access is required.
It signals- the chemical manufacturing companies showing reluctance to digital transformation and automation are facing several issues that need to be addressed beforehand.
The solution- embrace ERP software for your chemical company.
The ERP solution leverage is no more an option for the chemical industries if they are looking for sustainable growth. It facilitates IT base restructuring wherein online documentations with digital data of different departments get interconnected that zero down data discrepancies and speed up the data change management. It’s convincing enough that ERP software boosts chemical companies’ efficiency and productivity.
How ERP Solution Implementation Bring Positive Changes To Chemical Industry?
- Formulation management
The chemical companies are facing the biggest challenge in precisely estimating the raw materials’ measurement, concentration, potency, and reactions. That’s where ERP solutions help in establishing and maintaining the right chemical formula. For the best formulation management system, the right quantity of raw material must be ordered while following all the compliances.
ERP software can automatically order the raw materials after looking at the production requirements without any manual intervention. When the adjustment in raw materials’ potency is required, the ERP notify the same thing to the supplier. Besides, when materials are not required, ERP software handle returns and cancellations with the supplier that results in saving huge bucks.
- Improved visibility into inventory
The resilient manufacturing operations in chemical companies require the data generated from siloed working must be connected and a centralized database created. It enables data access in real-time and different departments can understand the impact of their decisions.
This is where ERP has raw material’s traceability, quality, and expiration dates-related data, in addition to warehouse and shipping information, which automates the process of knowing the locations where stock levels are low and ordering the materials from the supplier.
For instance, the purchasing department can work in rhythm with the production floor when they have real time-visibility into stock levels from raw material sourcing to final packaging.
- Real-time adjustments
Chemical manufacturing isn’t a set-in-stone type of thing. The companies need to modify the chemical formulas to innovate and improve the product. It’s possible only when the impact of changes is known in real-time.
The ERP solution is a boon that can reflect the changes in the chemical formulas instantly. The accelerated responsiveness to the adjustments required as a part of the upgrade is good for chemical companies. Plus, the time-savvy approach reduces errors and increases synchronization as a by-product.
- Supply chain optimization
The supply chain plays an integral role in meeting the customer demand on time because a little delay in raw material sourcing or chemical distribution slows down the production process. The ERP enables visibility or transparency in the supply chain, which delivers real-time data that helps with material resource planning and product lifecycle management.
The reduced inventory cost due to minimum wastage and improved supply chain efficiency helps in meeting supply and demand requirements in an informed way.
- Improved collaboration
The lack of synchronization means chaos that won’t bring expected results to the companies. When collaboration is missing among teams, it badly impacts business growth. When ERP solution takes the driver seat, the company gets benefited from various functions such as material procurement, catalog development, invoicing, vendor assessment, and more are integrated as a whole.
The improved collaboration shines through in terms of strengthened relationships with vendors, reduced waste, diminished procurement cost, and lower purchase price.
- Product innovation
It’s beyond ones’ imagination that various departments such as sales, R&D, manufacturing, and operations can work in sync with the legacy model. The ERP software has connected the dots and allow different departments to access and share the data to better manage product lifecycle and project future demands.
There is one more advantage of interconnectedness within the organization, that’s- immediate transfer of the users’ response by the sales and marketing team to the operations and manufacturing team allow the company to meet the demands with proactive actions.
- Ensure regulatory compliance
As the business grows, the chemical companies need to make the processes, workflow, and operations comply with local, national, and international regulations. The high risks involved with chemical manufacturing, storage, labeling, and distribution make it necessary to comply with regulations. Small accidents or a little tolerance to rules bring poor consequences that are hazardous to people’s health and safety.
The chemical ERP solutions having automation tools that can help companies with regulatory compliance modules to meet compliance requirements. The module using robotic techniques tests temperature, warehouse condition, pressure, and final products to test whether they are compliant or not.
- Tracking and analysis
Chemicals are hazardous commodities that can harm the people or environment when not handled properly. The companies are legally responsible for it, so they should have traceability plans and recall management in place. The problem grows by manifolds when companies import or export chemicals from multiple nations.
The companies need to embrace ERP software that takes care of supply chains and regulatory compliances. The complete lifecycle of chemicals and material tracking is supported when companies work with multiple suppliers and deal with inventories and raw material sourcing. The complete visibility into the system from chemical shipping to the final points makes adhering to stringent rules easy.
- Records digitization
The chemical companies irrespective of size and type are generating petabytes of data, which needs to be recorded and managed for future analytics. The ERP provides a solution to electronically store all the data and records, which improved accessibility, analysis, and decision-making. It eliminates the problems of records losses, information inaccessibility in real-time, and file overheads.
- Mobile accessibility
Gone are the days when managers stay glued to the desk to get immediate access to the information. The mobile extension enables managers to access the set of features and functionalities anytime, anywhere. It’s extremely helpful for the marketing and sales personnel that requires access to customers’ data in real-time to seal the deal.
For instance, the manager when sitting with a customer during a conference, the complete information about quotations, orders, and preferences of the customer helps him to convince and convert the customer.
How Can Probiz Software Help You?
Probiz solution is designed especially for chemical manufacturing companies to improve their operational efficiency as it helps businesses to curb cost while meeting production needs. The single platform bridge together all the operations from inventory management and manufacturing to order processing and customer relationship management.
In addition to achieving operational excellence, the software manages business profitability by providing access to material prices and inventory level data in real-time. The improved visibility won’t cause any hindrance when a major fluctuation in prices is observed. The compliance tracking tool enables businesses to know which import, production, and distribution processes are not abiding by stringent rules while competing with global companies. The analytical tools help companies to know the performance, growth, cost, and profitability chart.
Various chemical companies have cherished a range of benefits after the Probiz software implementation. Interested in knowing more about Probiz? Let’s talk to our business consultant that will help you in every way.