Are you clobbered down by the many challenges faced by the chemical industry? Are you unable to manage your chemical inventory and keep a tab on the by-products despite your best efforts? Do you fear that despite meeting the EPA standards, your business stands a risk of running into a hazard? Do you think that being in the chemical industry is a very challenging task?
If your answer is Yes, then we AGREE with you.
But we also PROMISE to give you a solution to all of the predicaments mentioned above.
By the end of this article, you will see how a national chemical manufacturing company came out of a dire situation by doing something very simple yet effective.
Radon manufacturing and exports is a big chemical manufacturing and exporting company with headquarters in Kolkata. They have 4 factories, one in each geographical zone of the country. Most of their clients outside India are located in Bangladesh. They manufacture a variety of products including acids, surfactants, detergents and fertilizers. Raw materials are first assembled at Kolkata, from where it is distributed to other manufacturing units.
Due to the intake of raw materials in such huge quantity, the company often ran into inventory debt. The paper documentation would take months to quantify and new inventory would go missing during this time. Also, the sheer number of people involved in the process made it almost impossible to trace the problem to its root. Things got more serious when an ugly accident was avoided by a whisker at the Pune manufacturing unit. The inventory directory showed an inflated figure of reactionary coolant. This led to a shortage of coolant during the exothermic reactions. The machines got overheated and the fear of a cataclysmic accident lurked around. However, the accident was avoided.
The owners faced another issue of data access. While travelling, they often had to depend on managers and sub-managers for information, which would take a lot of time and sometimes even be inaccurate.
Another issue which plagued Radon manufacturing and exports was the Exchange Fluctuations during payment from Bangladesh. Because invoice generation and payment during international transactions are days apart, there are often gains or losses due to the change in foreign exchange rate. This information has to be manually accounted so that the Profit and Loss and Balance Sheets remain accurate.
In addition to these, the practice of physically couriering documents across the country so that they could be approved and entered by the Finance team and then payments could be released caused significant delay in the overall operation of the company.
To combat the issue of data access, the owners of Radon manufacturing and exports decided to opt for Cloud ERP (Enterprise Resource Planning). They chose EXPAND as their software provider. Cloud ERP does much more while retaining all the benefits of traditional ERP. Cloud ERP is a Software as a Service (SaaS) program which can be accessed anytime from anywhere. This implementation not only allowed the owner to access data on the go, it also solved the problem of Inventory Debt to large extent. To combat inventory debt, checkpoints were created at every stage of transportation. The managers at these checkpoints were required to feed live data to the cloud ERP. Any discrepancy could be later traced and fixed.
AND THERE IS MORE…
Expand also solved the issue of Exchange Fluctuations through cloud ERP. A new section under the software was made. Under this section the user was just required to link the Export Invoice and tag the bank account as and when funds are transferred from the customer. The accounting entries related to foreign exchange gain or loss was passed automatically the moment the details of the transfer of funds are entered and saved.
Expand also provided for a seamless voucher and documentation approval process. With the new Cloud ERP software, documents could be approved as soon as they were prepared.
With unerring knowledge and continuous research and development in the field of ERP software, Expand can help you overcome a lot of testing business situations. You count on Expand, and your problems will start counting their days.