Optimizing Inventory in the Chemical Industry and Master Data Governance Role

Today's chemical companies need to have robust solutions for inventory control. Companies must manage inventory at multiple levels because of the changing market, increased customer demand for new products, and the global competitive landscape.

Master Data Governance can help you transform the production, compliance, and efficiency of your chemical company.

Consider using a solution that was designed specifically to meet the unique needs of chemical manufacturing when it comes to controlling inventory in the chemicals industry.

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These are some tips to optimize your Inventory

A solution must address the many guidelines set forth by federal and international agencies that regulate chemical manufacturing. These guidelines require that you track and measure inventory, provide details about products, materials and by products, and ensure the transportation and handling of these materials.

Quality and accuracy
Customers demand precise batches and high quality. Using the correct materials, proper labelling, measurements, and yield analysis, ensures that consistent manufacturing standards are met, and warehouse inventory is efficiently used.

Track and trace Functionality
Inventory optimization starts with proper identification and documentation. These are essential in the event of a recall. You should be able track and trace ingredients and products in your inventory management system. This will ensure that you can identify the source and take any necessary actions to improve inventory.

You need several components to ensure that you choose the right industry-specific ERP solution for your chemical company. These are just a few of the essential components.

  • Strategic Sourcing: Improving supply chain efficiency is essential. This will provide transparency and easily accessed information about vendors, partners, pricing and market trends.
  • Inventory transparency: With access to information about lot numbers, serial numbers and container types, your ERP can track and monitor inventory at multiple locations.
  • Documentation Track shelf-life requirements and other properties like potency, volatility, expiration dates and volatility to make sure chemicals are used correctly and in a timely fashion.
  • Predictive Forecasting: Get real-time inventory reports. This will allow your team to combine inventory levels with actual or anticipated orders. This will enable you to optimize inventory space and improve purchasing.
  • Compliance: An ERP system should be capable of tracking and monitoring products and processes using the appropriate Master Data Governance tool. Quality control measures are also required to ensure products conform to regulatory requirements and internal guidelines.
  • Safety: Follow Safety Data Sheets are an online system that provides information to employees to reduce injuries and accidents and to help with improper handling.

Choosing the right solution for your chemical ERP system is an important step. PiLog helps our clients by understanding their needs and pain points. We help companies optimize their inventory that are piling up with YoY increase in inventory hoarding, sourcing, procurement and transportation costs and increased risk of supply chain sustenance.