How your ERP Is a competitive differentiator in the chemicals industry

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Categories: Chemicals, ERP, Sage X3
July 9, 2018
Three bottles of amber liquid.

Chemical companies can improve their competitive advantage by using enterprise resource planning tools to maximize production efficiency.

Excel spreadsheets and disparate databases are no way for a modern chemical manufacturing company to run its operations. To remain competitive today, given the highly regulated industry constraints and the need to protect workers and the public, an enterprise resource planning (ERP) solution is the ideal way to manage complexity and innovate.

As seen in the recent post, The Industries Where Your ERP Choice Is a Major Competitive Differentiator, innovation can mean the difference for companies looking to gain an upper hand on the competition. Here’s a closer look at how your ERP is a competitive differentiator in the chemicals industry.

Many chemical companies have been to slow to adapt digital technologies that are transforming other industries, Companies that act on the opportunity provided by enterprise resource planning software can gain a decided advantage, increases revenue, improve efficiency, and offer new services to customers.

In an industry that has resisted change, there is a marked gap between companies that adopt technologies and those that still rely on pencils and papers to track data, schedule processes, analyze markets, and ensure regulatory compliance and worker safety.

Here are a few of the ways an ERP solution can lead to competitive advantage:

  • Supply chain optimization. By sharing data and insights throughout the supply chain, companies are far better equipped to solve issues, identify solutions, and innovate. ERP tools help track performance and order histories, identify patterns, and find ways to reduce costs from suppliers and improve operations. Transparency empowers collaborators internally and externally to innovate.
  • Formula management. Ensuring the accurate measurements, concentrations, potencies, qualities, and reactions is critical. Even minor errors can result in downgrades to products, waste, or rework.
  • Production agility. An ERP solution allows for the optimization of machines, personnel, and products. With frequent variations to products a key component of many manufacturers, scheduling production to reduce turnovers, cleaning and decontamination while maximizing production is an important consideration.
  • Product development. Chemical manufactures can use the data from sales and usage to spot trends, both broadly and targeted, in determining new products or formulations. Adapting to actual or anticipated market demands allows manufacturers to reduce risk and time to market.
  • Consumer sentiment. As the general public expects companies to be more environmentally aware, manufacturers can use ERP features to reduce reliance on products that have negative connotations or environmental impacts.
  • Regulatory compliance. The tightly regulated chemical industry needs solutions that ensure worker and public safety. Your ERP can use automation tools to monitor ingredients, intermediate mixes, and final products, measuring temperature, warehouse conditions, and other factors. Automation tools also allow for the tracking, recording, and reporting on these conditions, resulting in a higher degree of compliance.
Worker repairing a piece of machinery.

Predictive maintenance alerts generated via ERP tools can limit downtime on the chemical manufacturing floor.

Sage X3 is a powerful ERP solution for chemical manufacturers. With Sage, companies can leverage industry-specific features that provide a competitive advantage, including formula management, unit-of-measure conversions, shelf life management, potency management, and analysis certification.

NexTec Group helps companies identify the right ERP solutions that meet critical business needs. Give Sage X3 a try and see how NexTec Group can give your chemical company a competitive difference.