Digital transformation to gain strategic advantage in chemical companies

The opportunity to apply new technologies to improve efficiency and the potential to integrate production, sales, marketing and customer service with transformative technologies are the future of the industry.

Here are three principles of transformation

1. Innovation

In the chemical industry, innovation provides a competitive advantage, just as in any market - independent of industry or product. Chemical companies are also constantly innovating. However, the acceleration speed of innovation must be supported by efficient operation which is also agile in nature, so as to take advantage of innovation and opportunity. Growth oriented chemical companies are investing in their operational infrastructure to support new innovation.

2. Data driven decision making

To run at the highest level of efficiency and productivity, companies need a single data source, regardless of whether the data comes from one or more systems. This enables them to fully understand suppliers, solutions and customers, and to make "intelligent" (data-driven) decisions. The simple and convenient access to fully coordinated data will improve productivity, enable managers to obtain better information in the whole operation process of the chemical business, and have faster decision-making ability.

An effective ERP system is the driving force to establish a centralized database and coordinate data sets in the whole enterprise. This data consistency, a "single source of truth", enables Bi and data analysis tools to provide real-time insight for advanced decision-making.

3. Risk and compliance management

Risk is an inevitable part of any business. In the industry where safety and compliance are the basis of business operation, risk management is a crucial issue.

It is estimated that about 7% of the annual revenue of US companies is lost due to fraud, most of which comes from internal sources. Comprehensive enterprise management techniques, such as ERP software, will create an audit trail. Coupled with its security and fine-grained access control, theft from internal sources will be more difficult. ERP system in chemical industry only allows users who need specific functions to access, but does not need to let employees access all the contents.

In the United States, chemical companies are regulated by many institutions. The Environmental Protection Agency (EPA) manages and monitors leaks, discharges, releases, and exposures to hazardous and toxic substances. The Department of transportation (DOT) monitors the storage, use, and transportation of these materials. The occupational safety and Health Administration (OSHA) administers workplace factors that affect workers' health and safety. Food and drugs are sponsored by the Federal Drug Administration (FDA), which regulates the ingredients in these products. Hazardous waste is under the jurisdiction of the United States Environmental Protection Agency and is regulated by the States, just as any fungicide, insecticide or rodenticide used or produced is under the jurisdiction of the United States Environmental Protection Agency. Finally, the Department of Homeland Security (DHS) manages the cfats program for chemical facilities and cooperates with relevant facilities to ensure that these facilities have safety measures, reduce the risks associated with certain hazardous chemicals and prevent them from being used in terrorist attacks.

Most of the chemical laws in the United States belong to the toxic substances chemistry act of 1976 (TSCA), which places the responsibility for complying with chemical regulations on companies that produce chemicals. This means that business systems built specifically for chemicals are essential for monitoring and reporting all the necessary information to comply with the regulations required by many of the above organizations and procedures, as well as more.

Chemical manufacturing and distribution businesses are gaining strategic advantages through three different but equally important digital transformation principles: innovation, data-driven decision-making, and risk and compliance management. Business leaders in the chemical industry are looking for a complete business management strategy to provide a fully integrated, dedicated solution and improve business efficiency and security.