ERP Strategies for Chemical Manufacturers
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1 ERP Strategies for Chemical Manufacturers Summary Results June 2015
2 Program Overview Between April and May of 2015, Gatepoint Research invited selected manufacturing sector executives to participate in a survey themed ERP Strategies for Chemical Manufacturers. Candidates were invited via and 100 executives have participated to date. Management levels represented were predominantly senior decision makers: 15% held the title CxO, 30% were VPs, 47% were Directors, and 6% were Managers. Survey participants represented firms from both General and Primary manufacturing sectors. Responders worked for firms with a wide range of revenue levels: 19% worked for firms with revenues between $500 million and $1.5 billion, 22% between $250 million and $500 million, and 59% for firms with less than $250 million in revenues. 100% of responders participated voluntarily; none were engaged using telemarketing. Summary Results June 2015
3 Observations and Conclusions Survey respondents firms covered a wide variety of manufacturing segments, including Commodities (24%), Petroleum and Plastics (20%), and Paints and Coatings (17%). Survey respondents report that within their firms ERP is most widely used in manufacturing operations (72%), supply chain(69%), and finance management (69%). 25% of respondents found their business systems unsatisfactory for planning and scheduling. Another 17% thought their systems poor at calculating costs and profitability. Respondents felt their ERP systems limited them in the following areas: User experience (40%), Need for ongoing customization (37%), lack of functionality (35%). Survey takers responded strongly to a wish list of ERP systems enhancements, requesting stronger Business Intelligence (45%), easier upgrades (37%), and industry specific customization (33%) among other improvements. More than a third of those surveyed report their ERP systems cannot support the complexity involved in mergers and acquisitions. 27% report problems handling information consolidation across groups and divisions. Fear of disruption (46%) and uncertainty about cost (43%) are two leading factors blocking respondents from upgrading ERP systems. Summary Results June 2015
4 Which of the following chemicals industry segments describe your business? Specialty 39% Commodity/Basic Petroleum & Plastics Paints & Coatings Agriculture/Fertilize r Pharmaceuticals Soaps & Detergents Other 9% 10% 12% 17% 20% 19% 24% Adhesives Advanced materials Asphalt Biofuels Color Cosmetics/ Skin Care Contract manufacturer Flavors Oil and gas - energy sector Paper Products Polymer Polysilicon (Solar) Printing Inks & Coatings Specialty Steel TPU and Silicone Wood products 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Respondents firms create widely diverse manufactured goods Summary in a variety Results of segments. June 2015
5 In what areas are you currently utilizing ERP? Manufacturing operations 72% Supply chain management 69% Finance management 69% Customer sales and service 60% Asset management 41% Quality management 42% Formula management 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% ERP is most widely reported by survey respondents as being used in manufacturing operations (72%), supply chain management Summary Results June (69%) 2015 and finance management (69%).
6 How would you rate your current business system(s) in the following areas? N/A Unsatisfactory Adequate Good Planning/Scheduling 3% 25% 37% 34% Calculating actual costs/ profitability 2% 17% 44% 37% Managing regulatory compliance 13% 14% 45% 27% Alleviates data silos 10% 13% 46% 31% Managing different currencies 20% 10% 42% 28% Ability to handle localization needs 8% 10% 52% 30% 25% of respondents found their systems unsatisfactory for planning and scheduling. Another 17% thought their systems poor Summary Results June at calculating 2015 costs and profitability.
7 Are you experiencing any limitations with your current ERP system(s)? User experience 40% Need for ongoing customization 37% Lack of functionality to support processes 35% Flexibility in managing mixed mode and/or complex environments Lack of integration among product suites 26% 27% Cost of ownership 20% Scalability 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% User experience problems (40%) lead respondents list of Summary ERP Results systems June shortcomings. 2015
8 Do any issues add complexity to your business that your current ERP system(s) can t support? 40% 35% 30% 35% 25% 20% 15% 27% 24% 20% 18% 10% 13% 5% 0% Mergers & acquisitions Group/Division information consolidation Financial reporting Entering new markets Rapid business growth Fluctuation in commodity costs 35% of those surveyed report their ERP systems cannot support the complexity involved in mergers and acquisitions. 27% report problems handling information Summary consolidation Results across June groups 2015 and divisions.
9 What are your priorities for enhancing your business systems performance? Improve manufacturing schedule completion performance Reduce variability in actual vs planned raw materials usage Integration with customer relationship management (CRM) system(s) 35% 35% 36% Increase the speed of new product development 29% Meeting regulatory requirements 26% Better manage seasonal variances 20% None of the above 19% Reduce manufacturing errors 9% 0% 5% 10% 15% 20% 25% 30% 35% 40% Among respondents, the top two business systems enhancement priorities are improving manufacturing performance (36%) and tighter materials usage control Summary Results (35%). June 2015
10 What ERP system(s) are you currently using? E2 Sage NetSuite Infor Microsoft Dynamics Oracle Homegrown Other 1% 1% 2% 3% 5% 5% 14% 37% Other systems listed: Adage and SAP Aptean Ross Chempax Deacom GP SAP Mass90 JD Edward Adage Movex 10.9 NAV PDI Enterprise PeopleSoft Prelude and SAP QuickBooks, SAP Ross TCM - WorkWise 0% 10% 20% 30% 40% The ERP systems field is wide open among those surveyed, with no dominant Summary vendor, Results software, June or suite 2015 of applications.
11 What enhancements would you like to see your current ERP vendor(s) deliver? Stronger Business Intelligence capabilities 45% Ease of software upgrades 37% Industry-specific add-on modules 33% Mobile access/usability 30% Cloud delivery 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Survey takers responded strongly to a wish list of ERP systems enhancements, requesting stronger Business Intelligence (45%), easier upgrades (37%), and Summary industry specific Results customization June 2015 (33%).
12 What is your overall satisfaction level with your ERP solution(s)? (Rate 1-5, very unsatisfied to very satisfied ) 45% 40% 35% 39% 30% 25% 31% 20% 15% 10% 5% 0% 13% 9% 2% Very unsatisfied Very satisfied Only 9% of respondents are very satisfied with their Summary current Results ERP June solution. 2015
13 What are the impediments to replacing your current ERP setup? Current situation is good enough for now 52% Too disruptive 46% Cost uncertainty 43% Budget restraints 39% Organizational resistance 31% 0% 10% 20% 30% 40% 50% 60% Fear of disruption (46%) and uncertainty about cost (43%) are two leading factors Summary blocking Results respondents June 2015 from upgrading ERP systems.
14 Profile of Responders: Industry Sectors Mfg - General 22% Mfg - Primary 78% All survey participants work in manufacturing sectors. Summary Results June 2015
15 Profile of Responders: Revenue $500 million - $1.5 billion 19% $ million 22% <$250 million 59% Responders worked for firms with a wide range of revenue levels. Summary Results June 2015
16 Profile of Responders: Job Level CxO, 15% VP, 30% Director, 47% Manager, 6% 94% of respondents hold executive positions in their organizations. Summary Results June 2015
17 Thank you for participating in the Executive Survey. Infor Chemicals is a purpose-built set of capabilities that allows you to: respond to your customers' demands faster and more profitably, and meet the increased complexity of regulatory governance. solve the unique challenges of your industry, such as the planning of coproducts and by-products, formula matching and optimization, attribute costing, safety, and quality. For more information, visit For immediate questions, chemicals@infor.com, or call Summary Results June 2015
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