The 8 Characteristics That An Erp For The Chemical Sector Must Meet

The use of an ERP management system in any company in the chemical industry is crucial to its performance due to the need to efficiently manage the supply chain that characterizes this type of company and the need to comply with legislative obligations.

The chemical industry is characterized by the complexity of its supply chain: raw material procurement and replenishment, storage and inventory control, manufacturing, purchase orders and transportation and distribution of chemical products. An ERP suitable for this sector provides a platform to control all these processes efficiently and comprehensively. Special emphasis is placed on helping to comply with chemical industry regulations.

The 8 fundamental characteristics that an ERP adapted to this sector must comply with are:

1 - Comprehensive supply chain management.

This includes the ability to track and manage raw material procurement, manufacturing and control chemical distribution shipments.

2 - Regulatory compliance and safety management

The nature of this industry and the products it uses require the ERP to be able to deal with safety data sheets, labeling, substance tracking, batch traceability, etc.

3 - Quality management

This type of company must demonstrate a high level of quality of its products and manufacturing processes, which may consist of laboratory tests and trials. Concepts such as traceability in these processes, non-conformity management should be covered by the ERP management system.

4 - Manufacturing formulas (Scandallos)

The chemical industry bases its manufacturing on chemical formulas that define the products involved in manufacturing and the processes that are performed on them. An ERP for the chemical industry must have robust functionality for handling these manufacturing formulas. Versioning of manufacturing formulas, automatic calculation of quantities required for different quantities to be manufactured, recording of changes in formulas, etc.

5 - Analytical capabilities

An ERP for the chemical industry must enable companies to obtain reports that show accurate information about manufacturing and supply operations in order to make the most appropriate decisions at any time. Cost analysis reports, tracking of key performance factors, manufacturing forecasts, etc.

6 - Traceability

Traceability is essential for the chemical industry to ensure the safety and quality of its products. An ERP for the chemical sector must be efficient in the management of batches and expiration dates or manufacture of chemical products. This will allow us to detect any incident more quickly and apply corrective actions more efficiently.

7 - Batches and expiration dates

An ERP for the chemical sector must facilitate the work with batches and expiration dates of chemical products. It should also automatically assign batch numbers, track each batch and expiration dates. This will prevent the use of expired batches in manufacturing processes and optimize warehouse management and associated inventories.

8 - Resource management and compliance with environmental regulations

An ERP in the chemical sector must have sufficient tools to manage the collection and treatment of chemical waste, generated in its different processes, in an adequate manner. Help to comply with environmental regulations and generate appropriate reports in this field.


In conclusion, the implementation of a business management system (ERP) in companies in the chemical sector is essential to guarantee their efficient operations, compliance with legal regulations and ensure the quality of their products. The ERP provides the precise tools to manage the complex supply chain, which characterizes this type of company, and the traceability and batch control that ensure the safety of chemical products.

The integrated management provided by an ERP centralizes processes and is capable of displaying analytical information that will undoubtedly help to improve company performance.