Solutions to the challenges facing chemical suppliers

For manufacturing, the challenge is not new. However, the cowid-19 pandemic has dealt an incredible blow to manufacturers, especially those specializing in food, beverage and chemicals.

Food processors are preparing for a new normal.

The problems facing food and beverage manufacturers are similar to those that the industry has been solving for years, but in different contexts. Consumers continue to demand more product innovation as the industry faces higher quality and compliance pressures, smaller profit margins, new opportunities and a growing workforce. These factors, as well as many others, are forcing food and beverage manufacturers to take creative approaches to their industry forward.

Chemical suppliers are faced with a series of regulations and supervision.

The Environmental Protection Agency (EPA) regulates the discharge, leakage and release of hazardous and toxic substances. At the same time, the occupational safety and Health Administration (OSHA) monitors workers’ health and safety in the workplace. The Department of transportation (DOT) reviews the storage, use, and transportation of chemicals. Most chemicals are regulated by the toxic substances chemistry Act (TSCA) of the United States in 1976. The law stipulates that the chemical companies that produce these chemicals must be held responsible for compliance.

Although these industries are facing a variety of challenges, there are two first challenges, as well as some equivalent solutions.

Quality and compliance requirements

As pointed out earlier, chemical suppliers are subject to a series of regulatory requirements of “alphabet soup”. Green compliance plays a more important role as today’s trend tends to reduce the “carbon footprint”. Many of these companies are regulated in terms of wastewater production and discharge. The quantity of products transported to landfills may be limited. How can they do all this?

Compliance with these institutions would be complex, if not impossible, without the technology provided by the enterprise resource planning (ERP) system to capture and track quality data at the project or batch level. Information about suppliers’ ingredients, intermediates and finished products is stored in the quality and MSDS (material safety data sheet) module of the ERP application.

On the other hand, food and beverage manufacturers should take a proactive approach to quality and recall management. Like chemical suppliers, they may be supervised by EPA, OSHA, dot and FDA. Now, the new domestic regulations require enterprises to be targeted in preventing risks, identify any threats, and recommend remedial measures. ERP solutions provide food and beverage companies with the means to record, monitor and track at each stage of the supply chain.

Recipe or recipe management

The chemical industry relies on recipes to keep products accurate and consistent. Tracking measurements, combining recipes with available inventory, ordering supplies, and sizing in the production shop all increase the complexity of chemical manufacturing.

ERP software helps recipe management, cross reference recipes with production planning, inventory, and supply chain logistics. A high quality ERP solution can provide the following contents:

Alternatives that allow different, low-cost ingredients to achieve the same results

Scale formula considering existing material differences and creating optimized production run

Cost management provides an accurate picture of the cost of intermediate or final products, including scrap, by-products and scrap.

Unit measurement conversion

Formula options to explain quality or capacity differences between other locations

For food and beverage organizations, recipe management is the main focus. Each ingredient in the formula helps to improve the taste and nutritional value of the product. For food processors, the ability to store and scale recipes is crucial. Thirdly, the ERP system allows them to maintain each recipe using a bill of materials (BOM), which shows all its physical properties, various revisions, and any production records.