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Chemical Manufacturing; MSDS, Formulas, and Microsoft Dynamics GP

There are still many family owned chemical and paint companies in our part of the country that have the local market space to thrive.  These types of businesses are the foundation to our economy and compete with the larger corporations for market share.  They also have the same types of operations issues as the larger corporations but they don’t have the big budgets to implement an Oracle or JD Edwards and based on my experience they don’t want a big package that dictates the way they do business either.  Small to midsized companies need a flexible package but also a package that requires less setups and runs their core processing correctly right out of the box.   

Chemical and paint companies have more choices now in choosing the right software for their business.  Custom Information Services (CIS) started helping our area paint and chemical companies in the mid-nineties by selling BatchMaster with the Platinum interface for accounting.  We have seen software companies try to meet this industry by releasing packages to meet this niche marketplace.  Some good packages and some very bad packages.    Keep in mind that these companies are process manufacturers, not discrete.  Paint and chemical companies  need formula management, formula security, multiple units of measure, physical property information, material data safety sheets, controls and documentation for hazardous materials, etc.  that are easy to manage and give you accurate inventory costs.  Margins are slim in this industry and inventory costs along with good customer service are a critical part of doing business. 

Based on our years of working with these types of companies CIS understands these business issues and our sales (me!) and consulting team have years of experience with this industry as well.   A few years ago CIS made the business decision to add another software package to our product offering for several reasons.  One being that I lost a couple of software deals to Dynamics GP!  My take on this is if you can’t beat ‘em then join them!  When asked why they purchased GP over our other package the response was the same; more functionality for the bucks and the technology based on Microsoft SQL made all the difference.  I am very glad that we made this decision since I am not seeing any development and declined support from the other package we represent…which by the way is very disappointing. 

The good news is that Dynamics GP along with Vicinity Manufacturing is the perfect solution for paint, chemical, and any process manufacturer.  Refer to my past article; Process, Discrete and Mixed Mode Manufacturing; 3 Business Issues – 3 Dynamic Solutions!

With our solution offering customers can get rid of MSDS Word documents; if their MSDS is dynamic and they have the need.  Vicinity notifies the end user if a new MSDS needs to be sent based on changes to the formula.    Of course input for raw material physical properties has to be accurate!  And of course that feature is available in Vicinity. 

Formulas can be secured and not accessible if they are still in R&D or other statuses.  If a customer calls and wants to know what you shipped them last year, the software can tell you exactly what formula based on the batch ticket was made for that order.  Formulas are called a bill of materials in discrete packages.  Batch Tickets is often the terminology used by process manufacturers that the discrete manufacturer calls a work order. 

The great thing about this solution is that a proven system such as Dynamics GP includes superior accounting and distribution with a total integration to Vicinity Manufacturing.  Vicinity addresses the formula manufacturing team from the product developer and product planner to the production manager and quality control tech. 

There are many other items I could discuss such as commission structures (I think most process or formula manufactures change commissions on a daily basis!), lot traceability, complex pricing, etc., however the point I want to make is this;  if you are a paint and chemical company please take the time to look at several software packages including Dynamics GP and Vicinity Manufacturing

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com

by Custom Information Services -  Dynamics reseller in Dallas, Fort Worth Texas.

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