Chemical companies face strict rules and procedures to follow that are enforced by governing agencies
The rules and requirements of the chemical industry are as volatile as the chemicals it produces. Chemical companies are faced with strict rules and procedures enforced by regulatory agencies, and it can be costly to resolve any violations.
In order to further complicate the business process, chemical companies must be aware not only of the hazards of the chemicals they use, process and produce, but also the environmental impact, safe handling and transportation procedures, and long-term occupational risks and hazards to employees.
Due to the nature of the chemical industry, choosing an ERP system to manage unique complexity requires first-hand expertise in the challenges and needs of the industry. Complex layers must be considered when reviewing solutions that can help chemical companies manage product, personnel, and compliance requirements.
The following steps can help guide the selection process and get the most value from your investment:
1. Review the important challenges facing the chemical industry
Because of the dangers and instability of the chemical industry, manufacturers face challenges that many other industries have not experienced. In addition to stringent health and safety requirements and compliance requirements, chemical producers must also address fluctuating fuel costs, electricity use, equipment maintenance and replacement, operating costs, logistics, and other barriers that may affect profitability.
2. Negotiate with key team members
ERP systems often work throughout the organization, which means that the needs and priorities of each user should be taken into account.
3. Carry out scalability test
Choosing a chemical ERP system is much more than being able to check all the boxes on your requirements list. You must also consider long-term needs and business goals as much as possible. With the growth and change of business, ERP design should adapt to the development of the company. Otherwise, you may find yourself once again experiencing the process of exploration and comparison (and spending more on the process than you really need!)
4. Determine the requirements for third party integration
Part of the flexibility of ERP system is the ability to customize the system according to your unique needs. Generally speaking, chemical ERP is specially designed for industry, but in many cases, companies may need to have greater control over the appearance and function of ERP.
5. Survey product support
All ERP systems have a certain degree of product support, but this may vary greatly depending on platform and vendor. When dealing with enterprise wide systems such as ERP, implementation is only the beginning. In addition to the initial start-up, you may need ongoing help and support during the induction period, training new employees, making major system updates, and making changes as your business grows or adapts to market changes.