Like many other industries, the chemical industry faces a number of challenges in coordinating production, packaging and pricing across the entire enterprise, while maximizing internal resources, and complying with government regulations. As customers and suppliers consolidate at an increasing pace and commodities change daily, it’s essential to have an IT infrastructure — with core enterprise resource planning capabilities — that provides flexible, integrated business processes and transparency.
Companies need a mix of optimized software for process manufacturing. itelligence provides SAP software, methodologies and value-added services that can do just that and match the special requirements of the chemical industry. There are solutions today that bring together all relevant data within key business processes and deliver improved information quality along the complete value chain.
Following are six specific business issues that are important for chemical companies to touch upon when building out solutions across the enterprise:
- 1. Innovation – As new products and services are developed, companies need to create differentiation and a reliable method to deal with that entire process. Accelerating the innovation lifecycle through better tracking of information in an ERP package enables companies to bring product to market and sustain competitive advantage.
- 2. Compliance – Registration and tracking of chemicals is prevalent throughout the industry, both locally and globally. Regulatory requirements emanating from entities such as the European Chemicals Agency (EHCA) and the U.S. Environmental Protection Agency (EPA) force companies to have a solution in place in order to sell their product in the marketplace. ERP solutions have to be able to handle proper registration, complete validation of substances, and verify product compliance.
- 3. Quality – Quality components of chemicals are extremely important in the supply chain, from selling the chemical to a customer to utilizing the chemical in internal manufacturing processes. For example, the customer should know the exact lab results of the chemical they are dealing with to ensure they are not posing any danger in the mixing of chemicals. A strong ERP solution should be able to handle the inspection, results recording, and continuous improvement initiatives that assure the highest quality products are available in the marketplace.
- 4. Process Manufacturing – Blending, bulk processing, reworking, and repackaging are all common processes in a chemical organization. Processes must be in place for handling the re-packaging of chemicals and dealing with situations that potentially could arise, whether in the sales process or while in use by a customer.
- 5. Sales Issues – Tracking the overall potency of chemicals and managing the entire sales process is important for the financial future of the company. If there is going to be a sale of a chemical to a customer, the level of potency needs to be known in order to drive greater margin out of the product offering. Robust pricing strategies and efficient order taking are the catalyst for successful shipping and overall product profitability.
- 6. Inventory Issues – As there are hazardous materials in chemicals it is extremely important to track those products throughout the supply chain. Eliminating confusion in product content and clearly tracking specific characteristics of chemicals is necessary for a chemical company to mitigate risk and ensure supplying quality products to consumers.
Is your business on top of these issues? If you’re interested in learning more about how itelligence can help your company, contact us at (630) 725-3340. And don’t forget to follow us in Facebook, Twitter, and LinkedIn!