The advantages of ERP for chemical manufacturing

Posted by Glynn Williams on 9 Sep


Complexity can be an issue for any manufacturing business, but it is a particular challenge in the chemical manufacturing industry. A lack of streamlined processes and extensive periods spent on data manipulation can lead to inefficiency, which is where an enterprise resource planning (ERP) software platform can help. In this article, we will be taking a look at some of the advantages of ERP for chemical manufacturing.

Formulation management

The driving force behind all product material purchases should be the formulation. With an ERP system, chemical manufacturing companies can track the number of raw materials they have available as well as the quantity required to meet sales forecasts. ERP offers process manufacturers the opportunity to order raw materials continuously, to meet the expected production requirements without needing manual intervention. Formulations that need to have their potency adjusted can also become much easier to manage, as the business can now keep track of raw inputs directly back to each supplier. The supplier is not only notified of the need to adjust the formula's potency, but they can also deal with cancellations and returns much faster to reduce company costs.

Stock control

Stock control in chemical manufacturing is most effective when it utilises data elements, such as traceability data, quality control data and expiration dates. An ERP system will already contain the shipping and warehouse information required to manage locations, FEFO and more while enabling automated processes that link lots and batches to quality control data. By taking this connection further, all of the information gathered can be related to the manufacturer's supply of raw materials, which can lead to a chain of connected data that can trace all inputs to their applications and end-customer locations. This can lead to the faster resolution of issues in-field, as well as optimised product traceability.

Product innovation

With departments including sales, manufacturing, research and development and operations all sharing their data, an ERP solution allows chemical manufacturing companies to manage product lifecycles more effectively while being able to anticipate future demands. An ERP solution will also grant chemical manufacturing companies an advantage over their competitors by supporting collaboration and providing customers with a quick response to sales demand and enquiries.

Improved collaboration

When every department access the same ERP system, the whole organisation benefits. Different functions such as material procurement, catalogue production and development, invoicing, contract management and development and vendor monitoring and assessment can be integrated better with key collaborators. This efficiency can lead to improved collaboration, stronger relationships with vendors, improved purchasing leveraging, lower procurement costs and lower purchase prices.

More efficient supply chain

By utilising ERP software, a chemical manufacturing company can work more closely with members of their supply chain to reduce cycle times by improving supply chain efficiency and visibility while reducing inventory costs. By using ERP software to manage raw materials strategically, costs can decrease, waste minimised and profits can increase. With better-informed planning for supply and demand requirements, the need for working capital can also be lowered.

Responsive and agile manufacturing

An ERP solution provides chemical manufacturers with the opportunity to be more flexible with their supply chain as demand changes increase. Revised or brand-new manufacturing plans can be distributed throughout your supply chain network, which helps them to manage their manufacturing in real-time based on accurate marketing and sales moves which can drive decisions regarding production.

If you're looking for an all-in-one ERP software solution for your chemical manufacturing business, get in touch with our experts at WinMan today.

>> See WinMan's ERP software functions here


Topics: Manufacturing, ERP Software, Business Management Software, Batch Process, Process Manufacturing, Cloud ERP

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