Top 5 Challenges Facing Specialty Chemical Manufacturers and How to Solve Them
Regulatory updates, modifications, new compliance requirements and the need to continuously make adjustments for OSHA, DHS, HCS, CFATS, REACH, FDA requirements are some of the unique challenges specialty chemical manufacturers face every day. We understand these challenges because we’ve spent over 20 years working with specialty chemical manufacturing customers.
What are the top five challenges specialty chemical manufacturers face?
- By far, the number one challenge our specialty chemical customers talk about is the regulatory changes and requirements placed on them daily. These changes come at a very rapid speed, and include all sorts of associated costs and efforts.
- The second challenge is the increasing cost of raw materials and products and the way the marketplace is changing and affecting those costs.
- Global competition and the push for higher quality at lower cost margins form the third challenge.
- Our customers tell us that mergers and acquisitions are the fourth challenge. Questions we hear “Are the right business systems in place to accommodate a new merger or acquisition? Is the existing business system scalable?”
- Finally, the fifth challenge our specialty chemical manufacturing customers are concerned about is new product development. Executives wonder “Are the right products being developed? What are the associated costs? What are the time constraints?”
Addressing Top 5 Specialty Chemical Challenges with Technology
Is your company struggling with any of these challenges? Selecting the right technology platform, including an enterprise resource planning (ERP) system, is the optimal place to start. Here are four traits to consider in an ERP solution:
Consider a business system that is compliant with global regulations. The system should provide documentation of standard processes, track and log operations and results, lot traceability and track items from cradle to grave providing confidence in your ability to implement an effective recall procedure. Look at a system that offers visibility and cost control. The new system should offer real-time inventory tracking so you can adjust forecasts and inventory to help ensure adequate supply for demand. Make sure the new system is flexible and scalable to accommodate organic and merger and acquisition growth and offers multi-currency and multi-language functionality so your company can compete globally.
If you want to start addressing some of these challenges now or in the future, let us help. We are one of the largest resellers of Microsoft Dynamics AX ERP, one of the fastest growing ERP solutions from the world’s leading software company. Sold only by partners, Dynamics AX is now available in the cloud or on premise. We have more than 20 years of experience helping specialty chemical manufacturers tackle industry-specific challenges including meeting regulatory compliance requirements and providing real-time insights into product costs. With AX, we can help you:
- Manage product compliance, including Material Safety Data Sheets
- Provide real-time insights into cost trends
- Make proactive decisions using data analytics
- Provide complete batch attribute tracking
Take a look at these additional resources for specialty chemical manufacturers: