Comprehensive Guide of ERP software for chemical industry
ERP software for chemical industry - Chemical manufacturing has a significant role to play in modern life. Be it toothpaste or a nylon jacket, medicines, or even a smartphone, we can see the dominance of manufactured chemicals everywhere. In this article, we are going to see the challenges and how ERP software for chemical industry will help overcome these challenges.
What are the Challenges in Chemical Manufacturing?
The thriving chemical manufacturing industry faces several complex challenges like any other industry sector.
- Increasing Competition
- High Complexity of Processes
- Chances of Human Errors
- Ever-changing Preferences and Expectations of Customers
- Diversification and Stringent Rules
- Compliance and Audit Requirements
Most of these challenges arise due to frequent changes in the customer’s preferences and intensifying competition.
Other reasons for these challenges include shortened product life cycles and an exponential rise in item proliferation.
Manufacturers of specialty chemicals need to address these issues to remain competent in the sector. They need to maintain a subtle balance between inventory investments, operational expenses, and customer services. Along with this, it is crucial to bring innovative approaches to several processes without compromising on the quality of end products. Here, ERP for chemical manufacturing can lend a helping hand.
A robust chemical ERP brings industry-specific modules with advanced functionality to help manufacturers meet various challenges and automate several business processes. Chemical manufacturers can easily improve their supply chain efficiency. ERP Software for Chemical Industry can assist them in multiple ways including quality control, real-time monitoring, contract manufacturing, and following regulations.
Let’s know more about ERP chemical software before discussing its features.
What is ERP Chemical Software?
A cost-effective, scalable, and custom Enterprise Resource Planning (ERP) software, which is made to boost the efficiency of chemical manufacturing companies is known as ERP chemical software. Small and mid-sized firms can use the ERP system for chemical manufacturing to drive growth and increase productivity.
Key Features of ERP Software for Chemical Industry
An ERP for the chemical industry is designed to address unique challenges and increasing competition. As a robust specialty chemical manufacturing software, ERP can manage various operations of various departments of your company. An ERP system for chemical manufacturing has various modules to support multiple packaging options, manage inventory, and keep the cost under control while meeting regulatory requirements.
Here is the list of major features of ERP software for chemical industry.
- Bi-directional batch traceability for manufactured products
- Support for OSHA, ISO, and other compliance-related requirements
- Stability testing and vendor approval
- Complete traceability for raw materials and co-products
- Formula storage and management based on physical properties
- New product development and control
- Warehouse and logistics management
- Costing and packaging management
- CAPA and non-conformance
- Real-time reporting and HAZMAT shipping documents
- Support for labeling requirements and security of various formulas
- Measuring units management and containerization
- MPS (Material Production Scheduling) and MRP (Material Requirement Planning) support
- Worker safety management and support
- Inventory management and expiration date management
- Support for quality control with a customizable COA report
Simply put, an ERP for chemical manufacturing can assist manufacturers to manage an extremely complex process while meeting stringent regulations and quality standards.
Types of ERP Chemical Software Processes
ERP chemical software can manage all the major operations of the industry. Talking about the types of processes an ERP system can handle, we can mention two types-
1. Blending or Mixing
In this type of process, the mixing of certain chemicals in a predefined quantity is carried out. Here there is no reaction or change in quantity occurs. In other words, this process has no byproduct and it is considered a simple process.
2. Based on Reaction
Here, two or more chemicals are mixed in a given ratio and as per the formula to change the characteristics or properties of the end product. The quantity of the final manufactured chemical may not remain a total of the quantity of two or three chemicals in volume. Some reaction-based processes have by products as well and all such processes are complex in nature. Manufacturers add certain chemicals, catalysts, etc. during the process and QC tests are essential for them.
Essential ERP Modules for Chemical Manufacturing Industry
ERP for the chemical manufacturing industry has many modules to manage different operations across all the departments. Let’s go through these modules with their scope.
1. Sales and Marketing
- Templates for Customer Service responses
- Product/batch-wise profitability
- Export reporting and documentation
- Advanced forecasting with the transfer of predictions to sales orders
- Category-based pricing structure
- Pricing management based on customer, product, quantity, and category
- Controls for credit limit
- Incentive scheme management
- Vendor management and approval mechanism
- Import reporting
- Tracking of rejection and expiration
- Vendor assessment and pricing
3. Quality Control
- QC parameter creation for row materials, finished goods, and SF goods
- Pre-process, In process, and post-process tracking for quality control
- Lab equipment management
- QC real-time reporting and management
- Attachment of third-party lab reports
- Embedding SOPs for various operations for following cGMP
- Analytics management and regulatory support
- SARA and other reporting for compliance and EHS programs
- Formula management and BoM (Bill of Material) functionality
- Batch yield, costing, and management
- By-product and co-product management
- Costing management
- R&D budget and cost tracking
- Material consumption tracking and management
- Raw material management
- Batch tracking for expiry, renewal, and limit
- Lot picking formulas
- Lot tracking system
- Stock management for quarantined and rejected materials
- Plant maintenance management
- In-house management
- Breakdown and repairing reports
- Spares management
Why SAP chemical ERP software Is important for Chemical Industry
The chemical manufacturing industry faces many challenges because of volatile nature and regulatory pressure. Digital transformation can play a vital role in handling these challenges. SAP chemical ERP software can bring the benefits of digital transformation in the chemical industry. Today, over 6500 businesses related to the chemical industry have put their trust in SAP ERP solutions.
SAP chemical ERP solution has assisted them to improve project management by up to 70 to 80 per cent. There is no exaggeration in mentioning that SAP ERP solutions for the chemical industry can bring radical changes in various processes to keep you ahead in the competitive environment.
How Can SAP chemical ERP can help Chemical Manufacturers - Its benefits
SAP S/4HANA Chemical management software is an ideal solution for chemical manufacturers to stay ahead of the competition. It can streamline the supply chain, business planning, and other critical operations. It also takes care of all the aspects from procurement to deployment with the help of in-memory computing processes. Manufacturers can also leverage the benefits of mobility and AR with the help of dedicated applications.
Here are the ways industries can get the benefits of SAP Chemical ERP.
- Optimizing integrated operations and customer retention processes
- Transforming collaborative R&D processes with innovative approach
- Managing various processes across finance, QA, sales, procurement, and other departments
- Extending asset intelligence and predictive analysis capabilities
- Getting reporting and other features in the same solution
How to Success With SAP Silver touch Chemical ERP software - Conclusion
As an experienced SAP partner, Silver Touch specializes in offering end-to-end services for SAP Business one and SAP HANA. We assist various industry sectors to increase business efficiency and ROI through advanced SAP solutions and add-ons. Silver Touch brings a dedicated business solution for the chemical industry with customized features. Seamless performance and enterprise-specific features like COA (Certificate of Analysis), job work management, plant maintenance, instant reporting, and testing procedure management can assist chemical manufacturers to drive growth.
Innovation and real-time analysis can give an edge to chemical manufacturers. As almost every business in the chemical industry has started becoming intelligent, it is essential for you to integrate feature-rich and customized ERP software for the chemical industry.
You May Also Like: How Much Does SAP Business One Implementation Cost?
How silver touch's ERP for Chemical Manufacturers Supports Your Business - Our Sales Pitch with CTA
Our domain expertise and a vast experience of making customized add-ons for SAP ERP solutions have enabled us to build the best-in-class Silver ERP Chemical solution. It has all the necessary features to streamline operations and drive growth for your company.
Here is how our ERP for Chemical Manufacturing benefits your business-
- Well-defined formula management
- Accurate batch management with scalability
- Built-in SDS Authoring
- Reliable lot tracking and management
- GHS capability
- Real-time reports on financials and inventory
- Mobile access and warehouse management
- Robust R&D feature for promoting innovation
- Effective quality control and management
Are you ready to give your chemical manufacturing company an advantage with an advanced ERP solution? Simply get in touch with our expert consultants, now!
FAQs About ERP Software for chemical industry
SAP S/4HANA Chemical management software is used in the chemical industry. SMEs in the chemical sector can use SAP B1 and other SAP solutions based on their requirements..
Chemical ERP can make your company ready to face the unique challenges of the industry while complying with stringent regulations, prevalent standards, and quality control.
A chemical manufacturing ERP you select should have the capability to track and manage inventories, measuring quantity in any units, and support for formula-based measurement conversions along with other necessary features.
If you find complexity of processes, lack of automation, and intensifying competition as major hurdles for the growth of your chemical business, you need an ERP software.
An ERP solution can enable process manufacturers to streamline processes and increase efficiency while meeting unique needs of their business. Automatic unit of measure conversions, COA creation, and MRP are some of the major benefits of ERP software for chemical industries.
SAP Business One - Other Resources
- Migration to Cloud- Challenges, Benefits, and Strategies You Need to Know March 13, 2023
- ERP for Apparel Industry- Scope and Benefits for Your Garment Business February 24, 2023
- How Customized ERP Benefits Professional Services Industry February 14, 2023
- How ERP can Transform Trading into More Profitable Business in 2023 January 17, 2023
- Importance of ERP Software Customization- Key Points to Consider December 14, 2022
- How to Choose the Right SAP ERP Consultant for Your Company November 25, 2022
- Importance of ERP System for Streamlining Business Processes November 15, 2022
- SAP Business One vs SAP Business ByDesign: Choose the Best ERP November 9, 2022
- SAP Business One VS NetSuite - ERP Comparison - Choose the Right ERP Software November 1, 2022
- SAP ERP Software for Construction Industry - Benefits & ERP Modules for a Construction Company October 18, 2022