The Top ERP Systems for the Plastics and Rubber Industries

This guide aims to assist plastics and rubber manufacturing companies in selecting an enterprise resource planning (ERP) system that meets their industry’s distinct production, inventory, quality, budget, and manufacturing process needs.

We will share the top ERP solutions for plastics manufacturers and provide advice to assist companies in determining the right system for their needs and budgets.

Plastics and Rubber Manufacturing Industry Overview

The plastics sector plays a pivotal role in many sectors, including packaging, automotive, healthcare, and consumer goods, producing custom-molded products, plastic components, compounds, and tooling made from 1000s of varieties of chemicals to produce thermoplastic materials, such as acrylics and PVC, and thermosetting materials like epoxy and silicone.

Plastic manufacturing processes range from 3D printing and CNC machining to polymer casting and injection molding. The complexities of plastics processing require specialized ERP functionality to benefit specific workflows, raw material and formulation management, quality protocols, tooling control, and regulatory compliance.

The Role of ERP Software in the Plastics Industry

Implementing an industry-specific ERP solution gives the plastics manufacturing industry distinct advantages in managing complex workflows efficiently while ensuring that quality standards are met. The right system can optimize business processes, productivity, quality, traceability, and customer relationship management, as well as increase profit margins.

This guide examines the specific operational requirements of the plastics manufacturing sector across the following areas:

• Production Schedule and Planning
• Material and Compound Formulation
• Tooling and Mold Maintenance
• Quality Management
• Costing and Overall Equipment Effectiveness (OEE)
• Compliance and Certifications

We outline top manufacturing ERP software based on plastic manufacturing-focused features and capabilities to help plastics manufacturers select the right ERP solution based on business goals, timelines, budgets, and scalability needs.

Plastics Challenges & ERP Solutions

Understanding the complexities of the plastics sector requires addressing several key pain points that are intrinsic to the business’s nature. Understanding these challenges is crucial for businesses in the plastics sector to implement solutions strategically.

Key Pain Points in the Plastics Industry

1. High Mix, Low Volume Production: Frequent job and materials changeovers make production scheduling and shop floor execution complex, which can lead to inefficiencies.
2. Materials and Formulation Management: With 1000s of options of resins and polymers, additives, and pre-production compounds, managing compliance and traceability is difficult without a centralized system.
3. Tooling Control and Maintenance: Controlling and executing preventative maintenance on a high volume of tools, jigs, fixtures, and molds is challenging and impacts changeover times and tool reliability.
4. Quality Control Protocols: Implementing statistical process control, corrective actions, defect tracking, and containment workflows across multiple work centers is essential for maintaining quality and consistency.
5. Regulatory Compliance: Adhering to ISO, ANSI, internal, and customer-specific quality standards is difficult from a workflow and documentation perspective.

How ERP Addresses Plastics Manufacturing Challenges

ERP software designed for process manufacturing helps plastics companies tackle difficulties through

1. Production Planning and Scheduling: ERP systems optimize production schedules based on machine and material availability, tooling readiness, job priority rules, and staffing constraints to facilitate high-mix, low-volume environments.
2. Material and Formulation Management: ERP software centralizes specifications, certifications, formulation instructions, and quality data for all raw materials to enable accurate traceability and maintenance of standards.
3. Tool, Mold, and Gauge Management: Preventative maintenance schedules, engineering/CAD revisions, and usage logs help control tools and molds effectively to help reduce changeover and maintenance times.
4. Quality Management Framework: Integrated statistical process control, test procedures, inspection plans, and documentation form a quality framework across production lines for improved consistency.
5. Compliance Management: Built-in ISO certification mapping, customizable checks, digital record archival, and automated workflow adherence facilitate regulatory compliance to help mitigate audit and penalty risks.

A plastics ERP solution goes beyond production to aid plastics manufacturers in managing inventory costs, coordinating suppliers, planning strategically, and improving customer service.

Top ERP Systems for the Plastics Industry

Selecting the right ERP system for plastics manufacturing operations requires a thorough evaluation of criteria specific to the plastics sector’s intricacies.

Here are critical selection criteria tailored for the plastics sector:

Material Management Capabilities: Considering the diverse properties of specialized raw materials used in plastics manufacturing, the ERP system should have robust and efficient material planning, procurement, and inventory control management capabilities.

Precision Manufacturing Tools: Precision is crucial in plastics manufacturing, and the ERP system must provide the tools for real-time monitoring and control of molding processes.

Compliance Management Features: Look for ERP solutions with built-in compliance tools that can handle the regulatory complexities of the plastics sector. These tools include tracking material composition, managing audit documentation, and ensuring adherence to industry regulations.

Supply Chain Visibility and Forecasting: The ERP system should offer enhanced supply chain visibility and demand forecasting features. This is vital for plastics businesses dealing with fluctuations in demand and disruptions in the global supply chain.

Sustainability Modules: For plastics businesses prioritizing sustainability, the ERP system should integrate modules for tracking and optimizing waste management processes. This includes monitoring recycling efforts and ensuring compliance with sustainability standards.

By prioritizing these criteria during the selection process, plastics manufacturers can ensure that the chosen ERP system is tailored to their specific needs, contributing to enhanced efficiencies and growth.

Cloud ERP for the Plastics Industry

As the plastics industry evolves, embracing Cloud ERP solutions becomes increasingly essential to enhance operational agility and scalability.

Cloud ERP solutions are rapidly gaining adoption among plastics manufacturers seeking faster implementations, scalability to accommodate growth and volatility, and accessibility across distributed facilities.

Key Benefits of Cloud ERP for Plastics Production

• Formula and Quality Support: Leading Cloud ERP software now provides robust recipe management, batch tracing, moisture analysis, test workflows, and statistical process control.
• Compliance and Security: Cloud data centers implement strict regulatory adherence, backups, encryption, and access controls surpassing on-site systems.
• Distributed Access: Remote access over WAN supports offsite QA labs, mobile plant personnel, and remote technical assistance.
• IT Resource Savings: Software maintenance and hardware infrastructure costs are eliminated with cloud ERP software.
• Scalability: Cloud ERP software readily adapts to increased production volumes or the addition of new product lines without extensive infrastructure investments.

Please see our detailed cloud ERP comparison table filtered to the plastics sector.

ERP Features & Requirements for Plastics

In the plastics sector, where the properties of vast raw materials are constantly changing, and the market continuously fluctuates, having an ERP system with the right features and capabilities is crucial for success.

The following is a breakdown of the essential requirements and features that an ERP software solution should offer to meet the unique needs of the plastics sector.

Essential ERP Features for Plastics Manufacturing

• Formula Management: Centralize specifications, certificates, and recipes for materials and finished goods while accommodating complex revisions and substitution flexibility.
• MES/MOM Interoperability: Facilitate real-time exchanges with shop floor equipment and quality lab systems for pulling production metrics and test results.
• SPC and Quality Workflows: Digitalize test procedures and enable statistical analysis, corrections, and preventative action while recording the lineage.
• Tooling/Asset Tracking: Check in/out control of high-volume tooling, track preventative maintenance execution, and calculate lifecycle costs at the component level.
• Batch Numbering Flexibility: Assign intelligent batch IDs by variables like machine ID, product family, and dates.

Integration with Other Software

• CAD Software: Exchange drawings, bill of materials, and revisions.
• Casting Simulation Software: Transfer optimal process settings.
• PLM Systems: Align formulation specs with product record data.
• Barcode Scanners: Enable paperless material movements & inventory tracking.
• eQMS/Document Control: Central compliance document management.
• Data Analytics: Gain insights into OEE trends and yields by factors.

Selecting modules and functionalities aligning with plastic production workflows is vital for ERP success. While essential features facilitate quality, traceability, and efficiency, flexible integration tools also enable endless expansion over time as needs change.

Cost of ERP for Plastics

Implementing an ERP platform represents a major investment for plastics manufacturers when factoring in software, hardware, integration, customization, deployment services, and training. Understanding total cost considerations is vital when budgeting.

Key Cost Factors

Software Licensing: For on-premise ERP, upfront perpetual licenses based on production environment complexity, user count, and modules selected represent a significant fixed cost. Cloud ERP options allow users to scale up/down flexibly.

Implementation: Configuration and integration labor comprises the most significant share based on scope, data transfers, interfacing, and volume of workflows.

Maintenance: Annual charges of software license costs for version upgrades, patches, and troubleshooting access.

Training: Reinforcement training and custom video asset production involve professional fees and employee time.

Testing & Go-Live: Pilots and mock conversions incur materials, dedicated testing staff, and overtime during staged launch. Multi-site rollouts magnify efforts.

Additional Plastics Industry-Specific Considerations

Material and Formula Data Migration: Most plastics producers have vast libraries of formulations, certificates, specifications, and quality test procedures accumulated over decades in disparate systems. Data migration costs must account for cleansing, normalization, and importing these into the ERP system.

Interface Development: Interfacing with shop floor equipment like extruders, presses, and printers for real-time data flow is complex. In addition, connecting legacy tools around CAD, simulation software, and quality lab systems racks up custom integration expenses.

Expanded IoT Architecture — Sensorizing machines for monitoring cycles, temperatures, pressures, and uptime analytics provides invaluable OEE insights but adds costs for devices, configuration, and data consumption during implementation if not already deployed.

While intimidating, ERP implementation costs manifest into inventory reductions, increased throughput, and decreased compliance risks realized over time. We encourage you to look at our in-depth guide to ERP pricing for a more detailed understanding.

Plastics ERP Case Studies

Reading case studies from other plastics manufacturers and compounders who have deployed ERP solutions with industry-specific features such as quality control, formulation management, and tooling tracking helps to gain deeper insights into the benefits of implementing an ERP system. Below are a few examples from our ERP case study library that will be helpful in your ERP research.

Double H Plastics case study: Double H Plastics implemented IQMS’s EnterpriseIQ ERP to modernize operations, resulting in enhanced real-time data management, improved production scheduling, and inventory efficiency. This led to significant cost savings and Double H Plastics winning the Progressive Manufacturing 100 award in 2009.

Gloucester Engineering Case Study: Gloucester Engineering Co. (GEC), a leader in plastics extrusion, faced challenges managing CRM, sales, and manufacturing across four units. They adopted Infor CloudSuite Industrial ERP for improved functionality, reduced risk, seamless integration, and real-time visibility. The implementation led to a 60% decrease in closing cycle time and significant annual savings.

Nissen Chemitec Case Study: Nissen Chemitec America, a major plastic injection molding firm for automotive manufacturers, overcame lean manufacturing challenges by implementing EnterpriseIQ from IQMS. This streamlined their operations, reduced errors, and improved communication, leading to substantial cost savings and increased customer satisfaction, positioning them competitively in the automotive industry.

Kamco Plastics Case Study: Kamco Plastics upgraded to Plex Manufacturing Cloud ERP, reducing material cost discrepancies by over 92% and streamlining inventory management. Automation improved accuracy and productivity, paving the way for further enhancements and potential expansion within the company’s parent company in Japan.

FAQ Section for Plastics ERP Buyers

When researching ERP implementation options for plastics manufacturing businesses, many questions arise. This FAQ section addresses plastics manufacturers’ most common questions, providing clear, industry-specific answers to help business owners make informed and best decisions.

Does ERP software facilitate unique plastic production processes like extrusion and molding?

Yes, leading solutions model extrusion, injection molding, blow molding, thermoforming, casting, and printing workflows while allowing data integration to machines for real-time cycle analytics.

Can my existing or legacy systems integrate to share data with modern ERP platforms?

Currently, tools for material testing, simulation, lab instrumentation, MES, and automation support integration to synchronize data through APIs. Be sure to prioritize must-have integrations with your ERP software company during ERP selection.

How suitable is cloud ERP for meeting my plastic production line needs?

Cloud ERPs now deliver the material, formula, quality, and regulatory solutions plastics enterprises rely on. A cloud ERP solution brings enhanced accessibility, faster updates, and subscription-based scaling that aids agility.

How does ERP software help tooling, gauge, mold tracking, and maintenance?

Centralizing design/engineering data, usage monitoring, maintenance task planning, and cost lifecycles for high-volume tooling assets optimizes reliability support while increasing production efficiency and reducing capital expenditures.

How can ERP improve material sourcing for Plastics?

ERP systems provide tools for efficient material planning, procurement, and inventory management. This enhances material sourcing by ensuring a steady supply of specialized raw materials, minimizing the risk of shortages.

How do ERP software systems contribute to sustainable practices in the plastics sector?

ERP solutions integrate modules for sustainable practices and waste management. This enables plastics businesses to monitor and optimize their environmental impact, achieve compliance with sustainability standards, and streamline waste management processes.

Is ERP customizable to accommodate the unique workflows of plastics manufacturing?

Yes, ERP solutions for the plastics sector are designed to be customizable. This flexibility allows them to align seamlessly with the intricate workflows of the plastics manufacturing production process, ensuring that the ERP solution adapts to your business’s unique processes.