Blueprint for a chemical manufacturer’s low-cost way of doing business

The chemical industry is experiencing challenges associated with the transformation of business functions and streamlining of operations. After all, in a hyper connected, fast-paced world, cutting unnecessary processes and optimizing resources must increase operational output. Chemical manufacturer operate with a wide range of stakeholders to drive operations that require visibility and transparency. Chemical manufacturers need to move from traditional platforms to newer, highly advanced software tools to improve plant productivity. This change requires strategic restructuring, process reengineering and operating blueprint of enterprises in a low-cost way. Business transformation has brought about specific and urgent problems, which chemical manufacturers need to solve, while maintaining a stable state of operation.

Legacy platform:

The improvement of operation and process needs to adopt new technologies such as automation, data analysis and machine learning. These technological innovations need to shift from traditional platforms to robust, high-tech tools and software. Chemical manufacturers often find it difficult to successfully take this initiative without interrupting their ongoing business. Executives also need to consider some cost related issues.

Shortage of technical personnel:

The chemical company has professionals in the workshop and on the top floor. These are people who are very proficient in their science and are used to following a specific operational blueprint. However, in order to simplify operations, skilled personnel are needed, who can take responsibility for chemical process management through updated tools and the nature of the chemical manufacturing process (and related tasks). At present, the chemical industry is facing a shortage of technical personnel, which affects the effective simplification of the digital process.

Inventory management:

Chemical enterprises usually rely on the internal establishment of electronic forms and software to manage inventory. The low efficiency of inventory is due to manual intervention, working in the silo, without real-time tracking inventory. However, in order to solve the inventory problem, moving the chemical inventory management process to the automated platform often leads to confusion and error handling, because the inventory data in the legacy system is very poor. The obstacles after the transformation make chemical enterprises alert, resulting in a temporary glitch in simplifying operation.

End to end process changes:

The production and post market cycle of any chemical product or raw material is complex and multi branched. In order to effectively simplify the whole operation cycle, chemical manufacturers will need to change all processes. Business transformation will include resource management, commodity acquisition, billing cycle, pricing strategy, report generation and many basic activities. These changes can be daunting, time-consuming and costly, which is a huge challenge for chemical enterprises in the process of streamlining operations.

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