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Managing Product Concentrations and Packaging in Chemical Manufacturing

Hi everyone,

I’m working with a chemical industry client who manufactures products at different concentrations. Typically, they produce a 100% concentrated semi-finished product and keep it in stock. Based on customer orders, they dilute it to concentrations such as 50%, 60%, or 70%, and then package it accordingly.

The packaging options include drums, IBCs, and tank trucks.

Each combination of concentration and packaging has a different sales price.

Additionally, depending on the concentration, the product may have different internal or external names. For this reason, I’m considering managing different product codes for each concentration.

For the packaged product, I’m thinking of using product variants to represent the packaging type (e.g., tank truck, IBC, drum). This would allow me to:

Track packaging inventory and consumption during production.

Reflect packaging costs in the finished product.

Maintain a clean structure with fewer product records.

My question is:

Would this approach be suitable for the chemical industry? Or are packaging materials typically managed differently, especially when they have a significant cost impact?

Thanks in advance for your insights and suggestions!

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Dynamics 365 Supply Chain Management

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