Chemical manufacturing and digital transformation work together to improve inventory efficiency, comply with regulations and accelerate the time to market:
It’s an exciting moment. Thanks to the digital transformation movement, we have the most amazing and wonderful technologies to drive business performance and operational excellence – and more than ever before.
In other words, time may seem scary. Digital technology and practice present new frontier and unmatched field. The usual business challenges are bigger and worse: global competition, complex supply chains, new rules.
In the digital economy, things that used to be very useful are no longer applicable. Dan Schulman, chief executive of PayPal, succinctly pointed out: “the biggest obstacle to a company’s future success is past success.”
Zinpro, an intelligent customer, is a good example. At the 2017 Conference on best practices for chemicals, I am honored to speak with mark Thome, global information technology director of zinpro. Mark’s company has a story about chemical manufacturing and digital transformation.
Zinpro produces micronutrient supplements farmers add to livestock feed to support the health of their animals. The company is on a positive growth track, but its legacy systems and processes are not enough to support its goals. The company’s products have also recently been under new FDA regulation.
In order to develop the company and shorten the listing time, zinpro must recognize and face the reality of the digital business environment:
The speed of change is faster than it – chemical enterprises need more choice and flexibility, the ability to act quickly on information, and most importantly, speed is needed.
Business leaders need to be implemented immediately – the pressure to lead competitors and quickly deliver results is growing; it requires the ability to manage massive data and in a simple way.
Explosive growth of data, equipment, and decision-making – businesses need to be simplified and integrated.
Zinpro has encountered a tough but not unfamiliar inventory challenge. The company’s legacy software is not visible, so no one really knows how many or where they are. In addition, paper-based manual processes cause costly delays and inaccuracies. All of this, coupled with the inability to track and track at the volume level, makes it extremely difficult to comply with the new food safety Modernization Act.
Zinpro knows that it must control inventory and help the company through technology and processes:
Track inventory – know where it is, how much it is to be produced, how to position it to be completed in time
Reduce inventory – better plan, keep fewer inventory, keep less material in the warehouse, reduce inventory related working capital, and release capacity.
Through the implementation of SAP suite and SAP certified g.i.b. supply chain management module on Hana, zinpro solves the inventory problem. With SAP’s more timely and accurate inventory, zinpro has been able to:
Optimize business performance
To increase the global economy
To abide by faith
Zinpro has significantly increased capacity by reducing inventory and building new plants, enabling the chemical manufacturer to transition from “production to order” to “production to inventory” mode. This means zinpro and can now provide products to customers in a few days, not months. Moreover, the company can believe that it has the best technology and processes to maximize the performance of its new plant. Zinpro performs sales and operations plans (s&op) and MRP. Equally important is that the implementation of system tracking and tracking technologies and processes ensures compliance.
All of these have contributed to substantial improvements in revenue and profit performance.
But don’t just take it from me – take a look at the demo video and listen to mark about how zinpro dramatically combines chemical manufacturing with digital transformation, dramatically reducing the time to market.