Best ERP Package for the Chemical Industry (including case studies)
Which ERP system is right for a chemical company?
For a chemical company, choosing an ERP system comes down to five key factors: formulas with varying concentrations, batch tracking with certificates of analysis, ADR and CLP data at the item level, seamless integration with your SDS software, and a vendor that understands the industry.
Put the common software packages to the test, and the list quickly narrows down. For Dutch SME chemical companies, SAP Business One with ProcessForce is often the only viable option left—and it’s also the one with the most references in the country.
Comparison: ERP Software for the Chemical Industry
The chemical industry has different requirements than the rest of the process industry. It’s not about allergens and nutritional values, but rather concentrations, hazard properties, and transport classifications.
A raw material has a composition that varies by batch. A mixture has a classification, pictograms, and H-statements. A shipment has a UN number and counts toward the point calculation for exemption.
| Software | Formulations with Concentrations | Batch and Certificate of Analysis | ADR, REACH, and CLP | Integration with SDS software | Case Studies in the Dutch Chemical Industry |
|---|---|---|---|---|---|
| SAP Business One with ProcessForce | ✓ Yes | ✓ Yes | ✓ Yes | ✓ Yes | Yes, several |
| Business Central with a chemical industry solution | ✓ Yes | ✓ Yes | ✓ Yes | ● Partially | through international partners |
| Infor CloudSuite Chemicals | ✓ Yes | ✓ Yes | ? Not public | ? Not public | Rarely found in small and medium-sized businesses |
| Datacor Chempax | ✓ Yes | ✓ Yes | ? Not public | ✓ Yes | Hardly any in the Netherlands |
| BatchMaster | ✓ Yes | ✓ Yes | ? Not public | ● Partially | Hardly any in the Netherlands |
| Oracle NetSuite with add-on | ● Partially | ✓ Yes | ? Not public | ● Partially | Rarely found in small and medium-sized businesses |
| Exact Online Production | ✗ No | ● Partially | ● Partially | ✗ No | Not focused on the chemical industry |
| Odoo | ✗ No | ● Partially | ● Partially | ✗ No | Not focused on the chemical industry |
| AFAS | ? Not public | ? Not public | ? Not public | ? Not public | Not focused on the chemical industry |
The evaluation is based on publicly available product documentation. Where a vendor does not publish the functionality, this is noted as such rather than treated as an assumption.
What stands out: the systems that can truly handle formulas with concentrations can be counted on one hand. And of that group, only a small fraction is actually in use at Dutch SME chemical companies.
That’s the difference between a solution that looks good on paper and one that someone here has already proven works in practice.
Two chemical companies that went before you
Two chemical companies that have already completed this process, both using SAP Business One. One is a trading company, the other a manufacturer.
Vesta Chemicals: REACH and Batches Without Customization
Vesta Chemicals supplies specialty chemicals, primarily catalysts. The company sources products from Asia and Latvia and sells to more than forty countries.
Until 2019, Vesta was running on a system that wasn’t built for the chemical industry. REACH compliance, batch tracking, currency management—everything had to be customized. It was expensive, slow, and vulnerable.
Vesta was looking for an ERP package with more flexibility. They found it in SAP Business One.
The system included REACH compliance, improved batch tracking, and the linking of purchased dollars to orders. The implementation took about a year, compared to two and a half years for the previous project.
“The great thing about SAP Business One, combined with Logres’ consulting services, is that we can put many new ideas into practice in a short amount of time.”Harry Kleinsmit, financial manager and co-owner at Vesta Chemicals
Spectro: Tighter Regulations as the Reason
Spectro manufactures chemical cleaning products for professional cleaning. Over 90 percent of its products are private label, which means there are many different formulations, each with its own quality documentation.
The impetus to switch came from outside the company. Requirements for safety, quality control, and traceability became stricter, and the old system could no longer meet them.
The solution chosen was SAP Business One with ProcessForce, integrating production, quality control, and traceability into a single environment. The April 1 deadline was met, despite a change in consultants along the way.
“As a company, you want to be ready for the future. SAP Business One has truly proven to be a catalyst for new developments for us.”Cathelijn van der Meijden, back-office employee at Spectro
Two different companies, the same underlying issue. The old system wasn’t built for the chemical industry, and the gaps were filled with customizations until that approach was no longer sustainable.
In both cases, the chemistry-specific functionality is now part of the standard configuration, rather than separate add-ons built around it.
Wondering what’s right for your situation?
Logres’ ERP consultants work with chemical companies every day, from raw material distributors to manufacturers with their own formulas. Feel free to discuss your situation with us.
About Safety Data Sheets
Creating a safety data sheet (SDS) is best done using specialized SDS software. That software contains the necessary knowledge regarding classification, H-phrases, and language versions, and it also keeps that information up to date as regulations change.
What you should expect from your ERP system is that it integrates seamlessly with these processes. It should ensure that the correct sheet is included with the correct shipment, that versions are tracked, and that any revisions are automatically sent to your customers.
For SAP Business One, this integration with SDS software has been tried and tested. It is in use at Dutch chemical companies and requires virtually no attention once it has been set up.
You can find out exactly how such an integration works in “Managing Safety Data Sheets Digitally.”
This ensures a clear division of labor. The ERP system manages master data, formulas, batches, inventory, and shipping. The SDS software determines the layout and generates the document.
If you have a clear understanding of this division of labor from the start, you can avoid the most costly mistake in a chemical industry implementation: discovering halfway through that no one had agreed on who was responsible for what.
Read more
- Batch Management in SAP Business One
- Comply with ADR regulations with SAP Business One
- Integrating SAP Business One with a LIMS
- Business Intelligence for the Chemical Industry
- Compare the best ERP packages for small and medium-sized businesses (SMEs) to narrow down your options
- Experienced ERP Implementation Partner for the Process Industry: How to Choose a Partner
If you’d like to see first what an ERP system means for a chemical company, the page on ERP for the chemical industry lists the key features. For distributors and wholesalers of chemical raw materials, that page is the more appropriate starting point.
What is the best ERP software for a chemical company?
For Dutch SME chemical companies, SAP Business One with ProcessForce is the most common choice in practice. It includes formulas with concentrations, batch tracking with certificates of analysis, and a proven integration with SDS software, and several Dutch chemical companies use it. Business Central with a chemical industry solution is a viable alternative, although most of its references come from outside the Netherlands.
How does creating safety data sheets work with an ERP system?
The layout and the document itself are generated by specialized SDS software. That’s where that expertise belongs, because regulations change frequently. Your ERP system then ensures that the correct sheet is attached to the correct shipment and sent to the correct customer, and that a revised version is automatically sent to your customers from the past twelve months. For SAP Business One, this integration has been tested and is currently in use at Dutch chemical companies.
What features must an ERP system have to comply with REACH?
The key point is that there is a substance level below the item level, including the CAS or EC number, the weight percentage per item, and the registration number. Only then can you calculate the cumulative tonnage per substance per year across all items and formulations, which is exactly what the REACH tonnage bands require.
What is the difference between a chemical industry ERP and a food industry ERP?
Technically, they’re similar: both work with formulas, batches, and quality control. The difference lies in the surrounding data. A chemical company needs ADR data, CLP classification, UFI codes, and safety data sheets, plus formulas that account for the composition of the batch being used. Software packages designed for the food industry do not support these concepts.
Does an ERP system calculate ADR points?
Some do, but most do not by default. The 1,000-point system requires a calculation per shipment based on transport category and quantity. Without that calculation in the system, you cannot demonstrably apply the exemption, and it must be done manually—with all the associated risks.
How long does an ERP implementation take in the chemical industry?
That depends mainly on the complexity of the formulas and the number of integrations. At Vesta Chemicals, the process took about a year, compared to two and a half years for their previous implementation. The more clearly the processes and compliance requirements are defined in advance, the shorter the implementation will be.
