Some Challenges for a Chemical Manufacturer

In today's fast business scenario, a chemical manufacturer's lack of agility will seriously affect its competitiveness. The chemical industry is a highly unstable industry, which requires the participants in this industry to develop and adapt to the changing market conditions. To help them achieve this, a chemical manufacturer must have a reliable IT infrastructure and ERP system that can analyze operational data, support key business functions, and ensure improved organizational transparency.

Facing increasingly fierce competition and severe challenges, the only choice for a chemical manufacturer to survive in the market is to turn these challenges into opportunities.

Contact our experts to learn how our solutions can help a leading chemical manufacturer meet market demand.

Challenges for a chemical manufacturer

Unexpected changes in commodity prices

According to the trend of a decade ago, energy costs seem to be rising, but cheaper forms of energy have emerged in recent years. If the benefits of falling energy prices are evenly distributed among countries, energy manufacturers will breathe a sigh of relief.

Therefore, chemical enterprises need a strong ERP system to help them quickly deal with the fluctuation of energy prices.

Increased number of recalls and quality audits

Chemical manufacturers face a variety of government and other regulatory compliance. Therefore, they must maintain strict quality management and detailed product information.

Chemical manufacturers are also required to accurately obtain data from the operation process so that they can be prepared in case of a recall. To have the ability of quality audit, the chemical company must integrate the traceability data of the whole business, and enable various stakeholders such as suppliers and customers to access these data in the process of quality audit.

Manage production and operational data

Different stakeholders may have different needs and requirements for chemical enterprises. For example, shareholders pursue profits and revenue, while customers want more with less money, and regulators respond to safety and environmental issues.

By effectively managing their operational and production data, chemical manufacturers can ensure a successful response to the needs of various stakeholders in their value chain.

Reduce formulation costs and create new efficiencies

The supply of raw materials in chemical companies is affected by factors such as seasonality, procurement cost, and maintenance constraints. At the same time, however, chemical manufacturers must ensure that they obtain the correct materials that meet the required specifications to meet the standards of the formula.

Chemical enterprises must work smarter to realize the correct resource combination and formula optimization at the minimum cost, to meet the needs of internal and external stakeholders.