The chemical industry is one of the most challenging industries globally. Although, many innovations and developments are being carried out in the chemical business throughout the year, yet it remains subject to regulations every now and then. Certainly, because of alarming environmental concerns and health issues – the chemical industry is the first target in terms of regularizing the business practices.
Not just this, leaders from the chemical industry juggle to make profits amid high-raw material costing and production cost. Huge overall costing in the production processes decreases the return on investment (ROI) and lesser margins on the project.
Also, as per the changing regulations of the industry, companies have to be extra alert on current regulatory compliance and should be able to foresee the upcoming trends of the future. If we talk about the big chemical industries like DuPont, ExxonMobil – combating project cost or compliance to changed regulations is not a big concern but for many small to medium-sized companies, standing change is still not possible.
Difference between SMEs and Large Enterprises dealing in Chemical Industry
To add to the complexities of SMEs in the chemical industry, another biggest challenge is manual operations. Generally all the tasks, including the inventory management to production planning and execution to final client settlement and bill generation, everything is handled manually. This not just affects the speed of the project and delays timely delivery but also leads to errors in profit/loss calculations. Larger enterprises, however, don’t face such glitches because of the smoother workflow.
So, what causes the difference between small and large enterprises and how could it be bridged to reduce the SMEs’ risk.
The answer is ‘the management’. Larger enterprises automate their mundane business functions to focus more on innovation and improvised workflow for improved product production. SMEs on the other hand generally rely on manual tasks and eventually make a bridge between their hard work and their growth themselves. Without a smart enterprise-ready platform (ERP) in place, chemical industry challenges are relatively more for SMEs than the larger ones.
What really causes the difference?
The only difference seen from the above pointers is that the large companies make it ‘large’ because of the investment they make to achieve error-free, accurate and reliable data that ensures insightful decision making.
Also, putting advanced software at work for streamlined management operations not just encourages smooth workflow but also helps save money on resources, time on tasks, and cost on inventory. That is, where SMEs use their resources or different software for different operations and end-up investing even more than in a smart ERP system – larger enterprises wisely invest in Best ERP Software to embark on their journey of success.
How can ERP eliminate this Difference?
Intelligent ERP like SAP Business One Chemical is capable of managing the entire business with its in-built finance, sales/ purchase, inventory control, production/supply, CRM, billing, and accounting. Also, its regulatory compliance empowers leaders to always stay updated and compliant with the industry regulations. To add to this, industry-specific add-ons like plant management, quality control, etc. (provided by partners on demand) can add value to finished product and speed to your daily task.
And this is why, if you belong to small to medium-sized enterprise with goals to grow as a global enterprise – it’s time for you to invest in ERP soon.