For today’s digitally and economically disrupted chemical industry, 2023 has ushered in a need for bold, decisive action.
One of the first major industry sectors to recover financially from the COVID-19 pandemic, the chemical sector has since faced a seismic shift toward digitization. Yet a slew of challenges still get in the way of continued business growth, from inflation to disrupted supply chains to fluctuating prices.
While for many, the response to lower customer demand and growing pressure on profitability would be to cut back on cost and investments, leaders in the industry are tapping into the power of digital technologies to catalyze innovation, boost efficiency, and embrace agility. And at the forefront of that strategic spend are enterprise resource planning (ERP) systems.
Achieving consistent revenue growth alongside fast and constant global digitization has recently become more difficult than ever for chemical companies.
Over the past ten years, only 15% of the world’s top chemical manufacturers grew faster than the average global GDP growth rate while maintaining an ROI above the industry average, according to 2022 McKinsey research.
But why are so many chemical companies lagging behind?
Facing pressures around sustainability, supply chain optimization, and digital innovation, the businesses struggling most lack the control and the tooling to ensure operational excellence, commercial excellence, and profitable growth at once.
Our advice? Start with a Microsoft Dynamics 365 ERP for chemical industry success that will withstand current challenges as well as future hurdles.
For chemical manufacturers, the traditional ways of doing business are no longer resonating with customers, nor ensuring profitability. In turn, these companies now need to standardize a new way of working and establish a common ERP backbone.
Fortunately, companies hoping to boost sales of their highly-regulated chemical products are paying attention, and putting their investment where their focus is. Enterprise management software, including ERP systems, will continue to attract high spending among chemical companies.
Not only can they boost productivity and efficiency as a choice chemical manufacturing software solution, but ERP systems serve as a system of record and source of truth across the organization. This means they can operate compliantly and across borders with ease, especially when leaning on ERP systems that are cost-effective, fast to implement, and scalable.
And for businesses already running an ERP system, but perhaps not getting value out of it as expected, the imperative to modernize and consider cloud-based ERP systems is even more crucial.
According to Accenture,
“While the world has been changing fast, the core enterprise resource planning (ERP) systems that currently support chemical companies often have not. Many of these systems were installed a decade or two ago. As a result, modifying them is now a difficult and time-consuming task, and they struggle to meet today’s need for real-time data, analytics and digitization. Overall, many chemical companies are finding that their legacy ERP systems impair their efforts to increase efficiency, adaptability and competitiveness — and that the need for innovation and the right customer experience is greater than ever.”
Here’s why considering Microsoft Dynamics for chemical industry manufacturing just makes good sense.
While an argument can be made for any robust ERP system on the market, Microsoft Dynamics 365, in particular, is a powerful software solution that can be used in the chemicals industry to both manage and streamline business processes.
Not only can making your Dynamics ERP the digital core of your business help meet sustainability standards, promote business resilience, and create competitive advantages, but by pairing it with Cavallo, you can maximize the power of your ERP to support:
Imagine unlimited supply chain visibility, a step-by-step roadmap for a perfect order every time, and actionable insights delivered to you in real time. That’s the power of Dynamics 365 and Cavallo.
Today’s fastest-growing chemical companies have used the power of digitization to serve their customers more effectively, many of them leaning heavily on ERP systems like Dynamics 365 for a source of truth, a means of cost reduction, and the key to customer-centricity.
Now more than ever, chemical companies need to find ways to keep up and adapt to market, industry, customer demand, and regulatory changes. And it starts with the right tools. Get in touch with our team to take the first step in setting your business up for success.