Despite India having a population of 1.38 billion and a workforce of 467 million, plastics companies have reported problems with labour shortages. This has led to increased investment in technology such as automation and conveyor belt systems.
Over the past few years the demand and Supply of plastics in several industries has increased tremendously. To cover and manage the rising demand, daily requirement, production, Inventory and supply of plastic.Take control of your business with material resource planning, work orders, job cards, and other features our ERP helps you to manage accounts for planned and unplanned scenarios, be it using different materials or a big new contract.
Quality of a product decides the company’s reputation, therefore maintaining quality of the products is most important for any manufacturing business. Some other challenges faced by plastic manufacturing industries are wastage management and management of the workforce.To provide quality production and waste management in the plastic industry a software is required, with that one can operate all the departments at one single place.
Business challenges of the plastic industry
Shortened product life cycle
Plastic Product life-cycle has decreased day by day , which is affecting the entire supply chain of plastic goods. Quick turnaround on customer choices is critical for plastic companies to stay competitive.
- consumers in some verticals, like electronics, expect major new releases each year
because they’ve been conditioned by the manufacturers and the marketers to, and
- they expect every release to contain more new and exciting features than the last one
even though they don’t even use half of the current features.
- they also expect each new product to be smaller, lighter, faster, and more powerful than the one before
Volatile raw material prices
Entire plastic industry mainly depends on the Oil and natural gas industry , Price fluctuation of Oil and natural gas is directly effect on the Plastic industry . Manufacturers may have to pass on the price fluctuations resulting from the volatility of oil prices.Our intelligent Supplier Price comparison tools manufacturer a clear view of the Quality raw material and their prices .
Plastic industry is not environmentally friendly. Manufacturers are subject to growing regulations that govern the production, disposal, and cleanup of hazardous chemicals, as plastic products usage contributes to environmental pollution.They are so small that they can be inhaled and cause serious health problems both to humans and to animals. Particles can be deposited on the vegetation in the surrounding environment and in the water.
Opportunities of Plastic industry :
Rising use of Bio Plastic
Demand for bio-plastic drive from biomass such as vegetable oil or corn starch instead of petroleum , is expected to eventually exceed demand for traditional petrol polymers .Since plastics are a prominent material in modern manufacturing, they play an integral role in the switch to a circular economy. The increased use of bio-plastics is reducing landfill waste, utilizing renewable feed stocks, recycling petroleum-based plastics and limiting the use of finite resources to create products that perform just as well, if not better, than traditional plastics in many applications.
Booming Auto Parts Industry
Due to less weight and lower cost , use of plastic in the automotive sector increases the production opportunity .Also, plastic components weigh approximately 50 per cent less than their steel counterparts. This enables automobile components to be substantially lighter while retaining strength and contributes to an overall lighter and, therefore, fewer emissions and improving yet.
For the promotion of the plastic industry in the country, the government has taken various industry friendly policy initiatives such as deregulating the petrochemical sector and allowing 100% FDI under the automatic route to facilitate fresh investments.
The government is using Plastic and other related products for road development work as well. Plastic increases the aggregate impact value and improves the quality of flexible pavements.
Our cloud ERP helps in many ways including product changes and product invoice generation. Any alteration in the supply chain stage is also facilitated by Product Life cycle Management. Life cycle Management supports production processes like Bill of Materials Management, Item Management, Change Management (ECR, ECO, and ECN), Document Management and Compliance Management, Enterprise Resource Planning chains in support of financial processes like Purchasing, Inventory Management, Order Management, and Accounting.
After your complete ERP setup , there are minimum chances for production errors, resulting in better product quality. This also eliminates the chances of manufacturing defective products that are not marketable or user validated.
Plastic manufacturers have to manage thousands of product permutations, such as material or size. ERP systems today have advanced features like double-entry inventory with no stock input, output or transformation. Other important features like Drop-shipping , Cross-docking, Multi-warehouse etc are also taken care of by ERP systems.
Many organization and retails stores are using ERP software to manage their warehouse and stocks which calculates surpluses, rejections, repairs and other important planning metrics for the entire inventory.
Bill Of Material (BOM)
BOM is a consolidated list to manage the end product packaging. Being an essential part of the manufacturing process, BOM is used to link the formula with the finished goods or the intermediates stored in the inventory.By using BOM you’re smart Manufacturing software (ERP) can remind you when stocks are low that you can replenish as necessary. The accuracy in information helps in making better decisions about manufacturing the product efficiently and cost-effectively, aka getting more bang for your buck. Who doesn’t love that?
Material Resource Planning
The primary objective of MRP is to make sure that materials and components are available when needed in the production process and that manufacturing takes place on schedule.MRP synchronizes the flow of materials, components, and parts in a phased order system, considering the production schedule.
Connected to the manufacturing order, you can easily issue a purchase order to your subcontractor and track its status.Use the Subcontracting feature to supply raw materials to a third-party distributor or supplier and easily track all activities. This helps the large corporation to deliver the items in the shortest time and expand the business in the shortest possible time.
Below you can see generated subcontractor purchase requisitions/order and show Display/report detail costs of materials, order number & bill.
Frankly, a supplier portal does a whole lot of things that can benefit a company in many different ways.
Use the supplier portal to help suppliers manage themselves. The suppliers can submit requests for quotations and automatic supplier quotations, or access ongoing purchase orders and receipts. Suppliers can also raise purchase invoices for fulfilled orders. You can then verify these invoices for final approval.
The management can plan for the whole payment and invoicing at one click and can be prepared in advance for the upcoming hurdle.
ERP CREDIT @ erpnext