The companies which deal with the production and marketing of chemical compounds constitute the chemical industry. Normally, chemical industries function under the pressure of constant ecological norms and strict business regulations. To top this, there is competition among businessmen of similar kinds. Companies are under constant pressure to outperform the competition and thrive with maximum sustainability and profitability. As a result of this compounding pressure, owners of the chemical business are often battered down by the challenges of their respective companies.

Over-dependence on manual labour can amplify the problems faced by the industry. The need of the hour is the implementation of the latest technology in this sector.

The problems

Though problems of individual companies may be subjective, there are certain problems which are common among most firms of the chemical industry. The good news is that there exists a comprehensive solution to all these problems. Some of these problems are:

There is a constant fear of not meeting the statutory regulations. Failure to meet these requirements can result in shutting down of the company.

Often the level of quality of the products is not consistent throughout the production spectrum. This is a huge problem since a lot of these chemicals act as raw materials for other companies.

Large chemical industries often suffer from bloat procedures which slow down the operation and causes a reduction in profitability.

Manual accounting can also be a glaring issue for companies as there are chances of errors and it creates huge paper trails which are difficult to maintain.

Enterprise Resource Planning

ERP or Enterprise Resource Planning or ERP is a software which is aimed at creating a poignant environment where business processes can interact and collaborate with each other for their optimal function and smooth operations. ERP software serves as a platform for all data flow. Therefore, owners and executives seeking information can just log into the ERP software and gather information about all the processes in the business. Apart from solving the problems listed above, ERP can provide multiple benefits to the chemical industry.

The major benefits of ERP for Chemical Industry are :

· ERP allows you to enter and store the details of the finished products in the warehouse as well as of the raw materials. This helps in maintaining the products according to their age and stock. The products, therefore, do not expire and are efficiently managed. ERP software allows for comprehensive inventory management.

· ERP software can be configured to provide information related to revenues and liabilities. The data stored in the ERP software can be studied to formulate reports which in turn can be analyzed to provide business insights. Owners can learn what works for their business and what doesn’t. The data can also be utilized to reveal changes in trends in response to new implementations. ERP can be used to measure the success of business strategies.

· The software can be used to view manage multiple production sites. Owners and executives are not required to be present everywhere. ERP will act as a watchdog when you are not around. Since all the data lies in front of your eyes, you can self verify the accuracy of the reports that are presented to you.

· ERP software helps you to manage the quality of your products. The software allows for batch creation and inspection of batches through a checkpoint system. Thus, you are certain that products of subpar quality will not reach the consumer and fetch a bad name for your company.

· The standard mode of production and composition incorporated in the software makes sure that the products are of even texture and quality. Such implementation makes sure that only the standard procedures of product manufacturing are followed. It also strengthens the integrity of safety management.

· Chemical manufacturing plants require regular maintenance and vigilant running. Failures to maintain the machines or adhere to the safety guidelines can be cataclysmic for the plant and in turn for the company. ERP makes sure that this does not happen. With a central monitoring system, the owners can make sure that standardised management and safety measures are done on time. Such measures also make sure that the company does not run into trouble with the state.

· The software also allows for comprehensive human resource management. Features like attendance, payroll, and performance metrics can be incorporated into the software. The best part about the software is its ability to be completely customizable as per the business. Effective implementation of the ERP can release the tension of managing the workforce for the company. This is particularly useful in large firms which employ a huge number of people.

· The software also allows for effective management of shipment. Timely dispatch of products, logistics tracking and on time deliveries make the customers happy. Such customers re-order and also refer the company to others. There is no promotion like strong word of mouth. All of this leads to a substantial increase in profits.

· ERP software also allows for the overall development of research and development wing in terms of cost forecasting, new products, market estimation, etc.

In a nutshell, the benefits of ERP cannot be overestimated. If you have a chemical firm, get on board with ERP quickly.