At a Glance
- Chemical companies are looking to adopt the newer, digitized technologies to their fullest (instead of merely installing systems and processes that operate in silos).
- A well functioning Enterprise Resource Planning (ERP) system can help chemical companies in all phases of their operations- procurement, manufacturing, supply chain, vendor management, aftermarket, and more.
- Implementing an ERP system need not be a costly or daunting affair, provided companies go for the right system and take the help of experts where need be.
- The Covid-19 pandemic has put chemical companies at the frontline as this sector provides the raw material for hygiene products and chemicals. There is an elevated demand, expanded supply networks, improved data flow, and a greater need for systematic operations optimization.
Digital transformations have been a boon for every industry; however, many sectors are still looking for ways to utilize these technologies to their fullest. The chemical industry is on the cusp of legacy and advanced software and systems. Many companies have departments working in silos, manual documentations, slow change management mechanisms, data discrepancy issues, and an overall fall behind when it comes to digitization and automation. Chemical companies can address these issues and many others by investing in a high-end ERP system.
According to PwC’s 23rd Global Annual Survey, 42% of chemical company CEOs prioritized and invested in digital operations and related technologies.
The above stat signifies that now is the time for chemical companies to systematically restructure their IT base and look at ERP as an option and a way forward to sustainable growth. After all, every sector is looking to leverage digitization to their benefit, including the chemical industry.
Here are five benefits of an ERP software system for chemical companies:
1.Digitization of Processes Leading to Accelerated Timelines:An intricately designed yet easy to implement ERP system such as the Microsoft Dynamics 365 ERP comes equipped with artificial intelligence (AI) and machine learning (ML) based features that can automate many processes such as documentation, reporting, log entries, etc. This will reduce manual intervention (providing personnel with time to invest in more innovative aspects) and mitigate errors. Digitization in the chemical industry also helps expedite processes as the data can be accessed, altered, and verified in real-time. With Microsoft Dynamics ERP, chemical companies can realize the vision of going agile.
2.Fortifying Supply Chain Management (SCM):A comprehensive ERP for the chemical industry can facilitate better management of your supply chain by interlinking the departments and creating a data pool between finance, sales, and delivery. This way, you will digitize and monitor the procurement of raw goods, oversee warehouses, manage inventory more efficiently, channelize communication between different stakeholders, and streamline the workflow.
Figure 1: A Multi Pronged ERP System to Integrate Different Departments in a Chemical Company
3.Better Response Time and Quicker Time to Market:An ERP for the chemical industry provides companies with a competitive advantage by giving better process and resource visibility, interconnecting departments, and avoiding bottlenecks. ERP is also integral in enabling chemical companies to identify their slow to move inventories and find quicker delivery options. This considerably reduced time to market. The overall product development process in chemical manufacturing companies is also expedited, thanks to the automation and optimization features of ERP systems, and this also results in quicker time to market.
4.Dynamic Change Management:The chemical manufacturing processes are subject to changes at different levels, from pre-formulation to production and packaging. These changes take time to get recorded and notified in a legacy system-backed environment, leading to delays. However, ERP allows chemical companies to be more flexible and dynamic in their change management approach. As data becomes centralized and systems become integrated, inter-departmental collaboration shines through, expediting the communication network in a change management ecosystem. Even at the supply chain and aftermarket levels, ERP allows better visibility across several stakeholders, enabling manufacturers to respond in optimized ways to any changes.
5.Better Customer Service and Enhanced Customer Satisfaction:Like any other industry, the chemical industry also strives to satisfy its customers- be it other industries or retailers or the end-user. With an ERP system for chemical manufacturing, companies gain insights into customer preferences, and they can anticipate market needs. Companies are choosing ERP systems designed to respond quicker and better to customer demands. With the ever-changing customer expectations scenario, chemical companies need to invest in a system that provides them with better customer visibility and agility to respond.
ERP is a software of possibilities, and the chemical companies can turn these possibilities into opportunities. To survive, sustain, and thrive in the era of digitization, the chemical industry can make use of this software to integrate and collaborate better. It also helps to get expert consultants onboard to implement ERP smoothly and leverage it to maximize performance and reduce costs. While every company has a different set of problems and requirements, well-designed chemical ERP software can efficiently address individualized issues.
- The chemical companies must conduct a complete analysis of their as-is IT infrastructure and identify the right ERP system for their requirements.
- ERP is a dynamic, flexible software, and thus chemical companies can evaluate comprehensively better many aspects of their operations with the help of a single system.
- With learned ERP experts, chemical companies can go places in terms of operating smoothly and delivering consistently.
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XcelPros is a Chicago-based company and delivers transformation through technology. We offer business and technology solutions with deep industry experience in Chemical, Pharma, Life Sciences (including Medical Devices, Bio-Medical & Biotech), Insurance, Discrete Manufacturing, Process Manufacturing, Distribution and Food & Beverage.
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