Chemical companies need to get the best out of their processes with the least investment to maintain profitability and market share. To achieve these objectives, many companies implement specific ERP Software for Chemical Industry.
Chemical production is a dynamic, complex operation. Your goals are to remain competitive in the marketplace and increase profit margins. You need an ERP that goes beyond ERP and helps handle multiple challenges. An ERP software solution that knows your industry is key to remaining competitive and increasing profit margins. — objectives, regulations, compliance — all of these are part of your mission when manufacturing chemicals or products using chemicals or in the chemical industry.
Challenges faced by chemical industry manufacturers:
Today the chemical industry is going through unprecedented change and transformation. The opportunities are vast, but so are the challenges facing manufacturers.
The growth of consumer markets has created new opportunities for the supply of high-value-added chemical products. This growth is being driven by rising population, rapid urbanization, increasing disposable incomes and growing health consciousness. However, this growth has also created new challenges to manufacturers:
Cost pressures: With increased competition pressure, customers are looking at lower-cost products that require less processing and fewer chemical inputs, while at the same time maintaining consistent quality, performance and regulatory compliance.
Production efficiency: To maintain their competitive advantage and increase shareholder value, manufacturers need to improve operational efficiency, increase production output and reduce energy consumption without compromising on product quality or customer satisfaction.
Manufacturing integration: Increasingly stringent regulations are forcing manufacturers to integrate operations so that they can be managed in a more integrated manner and meet heightened expectations from customers.
Business discipline: Manufacturers need to put in place business disciplines to manage the complexity of their operations effectively to remain competitive in the future.
Chemical industry is one of the largest industries, which helps in fulfilling the basic needs of human beings. It also provides different types of chemicals in various industries. The manufacturing companies and chemical plants have to deal with a large amount of raw materials, equipment and finished goods. It is essential for them to manage their inventory effectively so that they can lower down the cost of production.
Lack of transparency across different processes: Due to lack of transparency across the process, it is difficult to manage the data at different stages i.e., while accepting orders, executing orders, delivery and payment processing.
Unstructured data, high manual work: Chemical industry deals with lot of data but most of the data is unstructured like invoices, purchase orders, shipping documents and bills; which leads to high manual work and time consuming for all stakeholders involved in this process like customers, suppliers and government bodies.
Time consuming and prone to errors: Most of the time employees working in chemical plant have to do manual entry and there is possibility for errors.
Unauthorized access and revenue leakage: When data is stored on paper or unorganized system it gives room for unauthorized access and further leads to revenue
With the help of ERP software, you get to manage all these challenges effectively and make a mark in an otherwise competitive Industry. ERP solutions remove the boundaries between functions and allows process integration.
Why the need for ERP software for Chemical Industry?
ERP Software for Chemical Industry is a crucial business application that helps to automate your business operations. It boosts the productivity of your business by providing integrated data and enabling you to work in real-time. Whether you’ve already adopted ERP or are still evaluating software for your manufacturing business, now is a great time to reflect on the best practices for implementing an ERP solution. This will help you save time and money as you plan ahead for implementation.
An ERP system can help you manage the flow of materials, parts and other resources throughout your organization. It enables you to track inventory and production processes in real-time.
In order to choose the right ERP system for your business, it’s important to consider a number of factors, including:
1) The size and complexity of your business
2) The need for scalability over time
3) Your IT infrastructure
4) Your budget
5) The available software solutions tailored to meet your needs
6) The level of expertise that is needed to implement the solution
Why choose SAP Business One as your ERP for Chemical Industry?
SAP Business One ERP for chemical industry deals with innumerable number of formulations, tests, samples, results etc. which need to be recorded and refined for large scale productions.
The quality of raw materials is of prime importance for desired quality products. Strict government and environmental regulations call for additional compliance in the entire production process.
SAP Business One ERP offers you best-in-the-industry tools to drive effective quality management at every level. Here are some features that contribute to smooth functioning of your overall business processes within SAP Business One ERP:
Compliance to government regulations: SAP Business One helps companies fulfil the regulatory requirements such as those mandated by industry and government agencies.
Batch/lot wise inventory management: The batch/lot-wise inventory management feature enables chemists to maintain separate inventories of raw materials, intermediates and finished goods, while ensuring that they are available at all times.
Formula management to track quality: The formula management feature of SAP Business One allows companies to keep track of every chemical formula and its ingredients.
Quality Control at various stages of production: SAP Business One’s Quality Management module enables users to track the quality of inputs, processes and outputs throughout the production cycle.
Accurate cost accounting for products and by-products: Companies can use this functionality to create cost accounts for every raw material used in production.
Shelf-life tracking of raw materials and finished goods: The shelf-life tracking feature allows companies to keep track of the expiry date of raw materials used in production and alert employees when it is time to replenish them.
Complete visibility of critical business parameters in form of drill down dashboards: Users can easily access key information related to their business at any time.
SAP Business One provides modules that are designed, configured and integrated with step-by-step ease, as per the unique requirements of Chemical Industry. SAP Business One for Chemical manufacturers helps to integrate and streamline critical business processes such as Procurement, Inventory Management, Supply Chain, Logistics, Production, Asset Management & Plant Maintenance in a cost-effective manner.
SAP Business One ERP can help you streamline your business processes and reduce cost significantly. You will be able to produce high quality products at lower costs, thereby increasing your profitability.
Signum Solutions is as SAP Business One Gold partner that offers solutions across a broad range of industries. Our business solutions empower you to make the most of your SAP investment and transition your business into the future. Contact us today for more details on how we can help.