Digital transformation has arrived for the chemical manufacturing industry. New advances in digitalization, cloud computing, and compliance management using an enterprise resource planning (ERP) solution are driving these advances.
For companies looking to leverage the latest technological innovations, there is an opportunity to identify new business models and improve business processes. Here are five ways the chemical industry embraces digital transformation today.
1. Growing use of cloud computing
Cloud computing frameworks allow chemical companies to provide their employees and supply chain partners with access to more data, in real time, to drive decisions that are more accurate and timely. They also allow for companies to move their ERP solution to a cloud or hybrid space that allows for more interactivity and collaboration.
These efficiencies provide chemical companies with more control of day-to-day operations, reduced costs, and agility. As companies grow, having a Software-as-a-Service (SaaS) ERP platform available means scalability is rapid, allowing companies to respond to opportunities faster.
2. Changing expectations for customer engagement
Customers today are expecting different relationships with manufacturers. Today’s customers want to be involved throughout the purchasing and manufacturing processes. That means manufacturers need tools that provide information to customers and insights more frequently. With a cloud-based ERP solution, your company can provide more integrated customer service from the point of sale through order delivery.
With a mobile ERP solution, salespeople can confirm production availability, access to materials, and projected delivery time. Accounts receivable and customer service personnel can answer questions with real-time information and updates available to share. Delivery and usage questions can be answered with pinpoint accuracy about timetables, batches, and quality.
In addition, with the industrial Internet of Things, there is more opportunity for companies to leverage data and information to offer new services and products to customers and end users.
3. Improved manufacturing efficiency
Chemical manufacturers face mounting pressures to maximize profits and reduce operational inefficiencies. Digital technologies, collected via a powerful ERP solution, allow companies to optimize production and supply management, create more efficient workflows, identify needed maintenance and repairs, track quality control, and use real-time business intelligence tools and data reporting analytics to make better decisions.
4. Maximize operational efficiency
Margins in the chemical industry are notoriously thin. With wildly fluctuating prices for certain materials, there is greater need to ensure that costs are contained in the sourcing and usage of materials. An ERP solution in the cloud allows companies to boost resource use, identify real-time price opportunities, and maximize ROI.
5. Maintain regulatory compliance
Chemical companies face mounting regulatory pressures worldwide. Your ERP solution can provide the company with monitoring, documentation, and reporting on hazardous material handling and disposal, safety, and security. With the advent of Globally Harmonized System (GHS) standardization of chemical safety guidelines and definitions, you need an ERP that collects and reports on necessary information to address audit questions and maintain safety standards that meet industry best practices.
NexTec Group works closely with chemical manufacturers to understand their unique business needs. Our consultants match those needs to the ERP products with the right features to drive growth and profits in the chemical industry. Contact us to learn more about how NexTec Group can help your manufacturing company thrive in a digital marketplace.