Overall trends in the chemical industry

The chemical industry plays an important role in the national economy of each country and is the basic and pillar industry of many countries. The development speed and scale of chemical industry has a direct impact on various sectors of the social economy. Because of its many categories, complex processes and diverse products, the chemical industry is a major polluter because of the many types, large quantities and high toxicity of pollutants emitted in its production. At the same time, chemical products in the processing, storage, use and waste disposal and other aspects may produce a large number of toxic substances and affect the ecological environment, endangering human health. The development of chemical industry to take the road of sustainable development for human economic and social development has important practical significance. China's chemical industry in general will be in a rapid and healthy development of the situation, but also the emergence of some new industry characteristics and trends, mainly in the following areas:

Business pain points and needs

Ø Industry, product characteristics of ERP needs are obvious

The demand for ERP products in the chemical industry is clearly different from that of the discrete manufacturing industry, with common demands including.

- Recipe management: Different from the bill of materials in discrete manufacturing industry, the recipe is often inverted pyramid or X-shaped, the input and output cannot be measured precisely, and the cost of the input needs to be allocated between the main product and joint and by-products when costing, and the output material exists in a circular input situation.

- Material purchase price: The purchase price of major raw materials often cannot be determined in advance, and only one method of calculating price can be determined when the purchase contract is signed, and the actual settlement price will use different pricing formulas and experience coefficients with the actual measured content of certain ingredients in raw materials and changes in market prices.

- Product pricing strategy and sales price control: The determination of the basic selling price of products is influenced by the changes in raw material prices, and requires a quick response to the fluctuations in raw material prices, and a large workload for the measurement of product costs and selling prices. Product selling prices need to be set according to different product lines, customer categories or specific customers, sales regions, transportation methods, payment terms and other conditions to develop different strategies.

- Quality management: The quality of raw materials, process products and finished products is often not determined at a definite value, and "suitability" is more important than "conformity".

- Material consumption measurement and inventory: The measurement methods for materials, semi-finished products, process products and finished products are various and the unit conversion is complicated; the method of inventory counting and the identification of differences are very special.

- Inputs and outputs: The inputs and outputs of production are emphasized, and the calculation of inputs and outputs is often measured by the content contained in various mixtures of materials.

- Labeling management: The requirements for product identification, safety identification and special identification are complex, and the receipt of labels is very strict.

- Delivery management: The delivery process is complex, and the transportation of toxic, explosive and hazardous chemicals needs to comply with the laws and regulations of special industries, and the management of customer credit has complicated judgment conditions.

- Qualified vendor management: There are strict regulations on the qualification and certificates held by suppliers, and non-compliant vendors are not allowed to trade.

- Scrap management: There are strict regulations on the scrapping and discarding of scrapped raw materials, semi-finished products and finished products.

- Environmental protection and energy consumption management: The amount of energy consumption is large, and the various costs incurred for the discharge of waste water, waste gas or solid pollutants need to be reasonably apportioned to the cost of products.

- Engineering projects and equipment repair and maintenance: There are many projects, equipment and repairs, which require project management and reasonable cost sharing methods.

- The need for mobile equipment: restricted by production and logistics environmental conditions, the site is often unable to use computers, the measurement and reporting required by various ERP systems is more difficult, the need to receive operational instructions and related reporting through mobile devices.

Ø Close relationship between upstream and downstream enterprises in the supply chain

Supply chain between upstream and downstream enterprises is not a simple buyer-seller relationship, in addition to the traditional way to sell products supplier management inventory and more in-depth customer technical services is the norm, discrete manufacturing ERP products can not meet the demand.

Frequent data interaction between upstream and downstream enterprises, e-commerce demand is gradually growing.

Ø The contradiction between supply and demand is prominent, the plan is difficult to do

Products are often difficult to plan because of whether they are often sold, or their specificity (suitable for a small number of customers), and there are more conflicts between planning, manufacturing, sales and logistics departments, which are difficult to coordinate.

Ø Information security and compliance requirements

The value and status of enterprise data in the process of enterprise management is increasing, product formulas and other sensitive data is the key to the survival and development of enterprises, enterprises urgently need a more secure, more reliable and more stable and compliant system platform to prevent the leakage of important data.

Our Solution

Based on Microsoft Dynamics 365, Office 365, Power BI, Azure Cloud and other products and services, we focus on the current pain points of the chemical industry and industry trends to provide a set of secure, reliable and targeted industry enterprise resource planning (ERP) solutions for the chemical industry.

Pain point 1: The demand for ERP has significant industry characteristics

Solution

Ø Solve the needs of recipe management, dual measurement units (Catch weight), product input and output, engineering project management by using the process industry features included in Dynamics 365.

Ø Solve the needs of engineering projects, equipment repair and maintenance through Microsoft standard features [Project Management and Accounting] and [Asset Management].

Ø Customized and developed functions based on Microsoft standard functions combined with line business features include: raw material purchase settlement price calculation, product cost and selling price measurement and release, quality inspection, quality control, quality report management, product label management, scrap management, etc.

Ø Based on the WMS function of Microsoft ERP standard as the underlying energy architecture, we develop application functions for different mobile terminals and use barcode or radio frequency tag (RFID) technology to complete receiving, warehouse transportation, inventory, delivery, etc. for warehouse operation.

Benefits

Whether through the use of Microsoft ERP system standard functions, or based on the standard functions combined with industry characteristics or the individual needs of enterprises to customize the development of functions, to the maximum extent to meet the needs of chemical companies different from the discrete manufacturing industry ERP system.

Pain point 2: The close relationship between upstream and downstream enterprises in the supply chain

Solution

Use the basic functions of Dynamics 365 ERP to realize supplier management inventory and customer consignment business; solve the demand of technical service through service management function.

Using the open data interface technology, it realizes various interactions with data between suppliers, realizes operations such as placing orders through the website or APP, and can directly query inventory, product information, quality information and other data. Seamless connection with e-commerce platform can be realized.

Benefits

Collaboration with upstream and downstream enterprises is strengthened through the implementation of the system, which improves the level of service for customers and customer satisfaction.

The link and time of order processing is shortened through data exchange, which improves efficiency and reduces the cost of data processing and exchange.

Pain point 3: The contradiction between supply and demand is prominent, the plan is difficult to do

Solution

By using the implementation of the master plan management function, we can help enterprises eliminate the differences between demand and supply, provide data support for production and sales coordination, and provide a basis for rapid response to customer inquiries.

By providing historical data and data models, it helps companies to strengthen forecast management and respond quickly to various changes.

Benefits

Balances the conflicts between production, logistics and sales departments, providing managers with important information and sound advice for decision-making.

Forecasting effectively offsets uncertainty in market demand and decreases in customer satisfaction caused by late delivery.

Pain Point 4: Information Security and Compliance Requirements

Solution

Follow the standards of data management in the chemical industry, and strictly implement relevant management requirements and regulations in the process of data collection, storage, utilization and sharing; adopt Microsoft's advanced data permissions and access mechanism to realize user control of various operations on data, such as field-level access permissions, record-level access permissions, and access to data can be classified as query, modify, add or delete, etc.

Benefits

The system is stable, safe and reliable in the process of use; it can avoid the loss to the enterprise due to the leakage of sensitive data to the maximum extent possible.

The system can be rapidly expanded to support the rapid expansion of chemical companies in the process of rapid business growth.

Microsoft has a complete set of big data management platform solutions and service support capabilities, so enterprises can focus on business development without worries.

Reference Case I Xiamen Oamic Biotechnology Co.

Customer Introduction

Xiamen Oamic Biotechnology Co., Ltd. was established in 2014 with a registered capital of USD 100 million. The company is dedicated to the development and application of high technology such as biotechnology, physical extraction and green chemistry to produce and supply natural ingredients for food, pharmaceutical and daily chemical fields. It currently has a biofermentation laboratory, an enzyme engineering laboratory and a green chemistry laboratory with 10 R&D groups. The cross-field collaborative research masters more advanced technologies.

Xiamen Oamic provides safe and reliable products and builds a mutual trust partnership with customers. We believe that quality is created by people, not by instruments. For this reason, every employee adheres to the "Quality Management System". The quality, safety and traceability of raw materials are essential for natural ingredients. Our experienced team is focused on the individual needs of our customers. "Zero quality risk" is the commitment to all customers and customer satisfaction is the goal of Oamic.

Business Needs and Solutions

Xiamen Oamic Biotechnology belongs to the JiaMeng Group, which started to use Dynamics AX2009 in 2009, with the increase of business needs and functional requirements, in order to meet the rapid development and important strategies of the company, the company decided to upgrade the original system, and after a rigorous evaluation, decided to continue to use Microsoft Dynamics 365 products to meet the company's needs and After a rigorous evaluation, we decided to continue to use Microsoft Dynamics 365 to meet our needs and long-term planning.

Ø To realize the planning and costing of joint and by-products through the recipe management function feature.

Ø To meet the various complex situations of sales and shipping, through the function of shipping management, the work of business personnel, planners, warehouse managers, delivery personnel and other positions are organically integrated with the functions of WMS; it reduces errors and improves efficiency.

Ø Use Dynamics 365 intelligent warehouse solution to effectively enhance warehouse management, improve receiving efficiency, effectively boost inventory turnover and reduce inventory capital pressure.

Ø Develop PDA warehouse system to seamlessly interface with Dynamics 365 to improve the efficiency of material collection between manufacturing and warehouse.

Ø Based on the standard quality management solution, the customized quality management combined with the characteristics of the chemical industry greatly reduces the cost of quality management and improves the efficiency of quality control.

Ø Realize financial accounting of transactions between multiple organizations in a group.

Ø Through the integration with Power BI, the data management and analysis capabilities are improved and data insight is enhanced.

Solution and Project Benefits

Oamic Microsoft ERP system is based on Microsoft Dynamics 365 ERP platform, which is customized with the enterprise's own characteristics and needs, eliminating a large number of information silos, using cloud computing, mobile devices and other emerging information technology and service means, putting enterprise management to speak with data, improving enterprise systematization and informatization, providing important reference information and help for decision-making, and improving enterprise contingency and competitive ability.

Reference Case II Guangdong Guanghua Sci-Tech Co.

Customer Introduction

Guangdong Guanghua Sci-Tech Co.,Ltd. was founded in 1980, is a national high-tech enterprise with leading technology in the industry, national torch plan key high-tech enterprise, national innovative enterprise, national enterprise technology center, excellent private technology enterprise in Guangdong Province. On February 16, 2015, Guanghua Sci-Tech was listed on the Small and Medium-sized Board of Shenzhen Stock Exchange.

The company has established a market network pattern with the Pearl River Delta and Yangtze River Delta as the core and facing the whole China as well as many countries and regions in the world. We provide comprehensive technical solutions to all new and existing customers and are a supplier to benchmark companies in the fields of electronics, surface treatment, chemicals, daily chemicals, ceramics, food, biopharmaceuticals, environmental protection and energy.

On September 2, 2019, the Ministry of Industry and Information Technology of the People's Republic of China released the "2019 National Technology Innovation Demonstration Enterprises to be recognized as the public list of enterprises", and Guangdong Guanghua Sci-Tech Co.,Ltd. was listed.

Business Needs and Solutions

Guanghua Sci-Tech has been using well-known domestic financial software since 2009. Due to the limitation of functions, it is far from satisfying the company's development needs and long-term planning, and cost accounting, planning management and financial management have become bottlenecks of enterprise management. In order to meet the needs of the rapid development of the enterprise, the company decided to choose Microsoft Dynamics ERP system.

Ø Using the functional characteristics of ERP products, it solved the problem that a set of data in the previous system application was separate, duplicated and unrelated, realized the unified basic data, unified business rules, and completed the centralized management of basic data and various businesses.

Ø The granularity of cost accounting is from product categories to specific products, realizing the cost accounting of chemical formula products and joint by-products. Realize rapid pricing and greatly improve the price response speed of market conditions.

Ø Through the custom-developed function of shipment management, the functions of sales, planning and logistics positions are organically combined to solve the problem of direct delivery management between factories and marketing organizations.

Ø Implementing master plan management, balancing demand and supply, narrowing the differences between several operating departments of marketing, manufacturing and planning, shortening delivery time and improving customer satisfaction.

Ø Implemented project management for engineering projects, R&D management, maintenance and other operations to achieve a plan for everything and clear and accurate cost attribution.

Ø Achieved comprehensive coverage of the entire internal supply chain activities such as procurement, warehousing, production and sales through the basic framework of quality management and the quality management module functions developed by the customer, which became the most important data source for TQM.

Ø Financial accounting of transactions between multiple organizations in the group is realized through the implementation of internal company transactions.

Ø Integration with Power BI enhances data visualization and enables business managers to quickly capture the most important factors in business management.

Solution and Project Benefits

Based on Microsoft Dynamics 365 ERP platform, Guanghua Sci-Tech's Microsoft ERP system has improved the group's vertical and efficient management, enabling the timely transmission of information on sales, manufacturing, supply, finance and quality of the group, breaking the time and space bottleneck of traditional management and greatly improving the decision-making level of enterprise management.

Partner Introduction

Information Worker Services (Xiamen) Co., Ltd. is a service provider, consultant and developer of Microsoft ERP and CRM solutions, which obtained Microsoft Gold Partner qualification in 2010 and passed the "Double Soft" certification in Xiamen in 2012. We have a Microsoft R&D center in Xiamen to develop ERP and CRM industry solutions. Our main solution capabilities include supply chain, lean manufacturing, automated warehousing, smart manufacturing, data collection, Industry 4.0, distribution and retail, group finance, business intelligence, project management, human resources, product design, collaborative office, e-commerce, ERP peripheral applications, etc.

Contact Information

For more information about Microsoft Gold Partner IWS, please visit their corporate website at

http://www.xmiws.com

Tel:0592-5962617

Email:marketing@iwstech.com