Echemi leverages Oracle NetSuite cloud ERP as its core infrastructure to integrate the transaction flow, logistics, and capital flow of global chemical B2B operations. This integration builds an operational system characterized by "business-finance integration, group-level management and control, global compliance, and real-time data-driven decision-making," which supports the closed-loop operation of its chemical supply chain and financial services.
Key Implementation Points of NetSuite at Echemi
Launch and Objectives: Echemi announced the go-live of NetSuite on October 20, 2023, with a focus on process integration, management efficiency improvement, and future scalability. By centering on the unification of master data and end-to-end sales processes, it bridges the gap between finance and business operations.
Selection and Architecture: NetSuite was chosen for its capabilities in rapid deployment, compliance with global accounting standards, multi-language and multi-currency support, and group management and control. These features enable Echemi to integrate diverse business formats and expand its overseas warehouses and overseas subsidiaries.
Implementation and Operation: An agile approach combining standard products with low-code development was adopted. After launch, the system achieved real-time financial visibility, instant processing of accounts receivable and payable, and real-time cash flow monitoring, while maintaining lightweight operation and maintenance.
Role in chemical supply Chain Management (SCM)
Master Data and Sales-to-Fulfillment Process: It unifies master data including products, customers/suppliers, pricing, and Incoterms (International Commercial Terms). The end-to-end process from order creation to delivery is automated, enhancing the consistency of fulfillment operations.
Inventory and Overseas Warehouses: The system integrates with Echemi’s overseas warehouse network, supporting functions such as incoming inspection, labeling/sorting, batch and expiration date management (based on FEFO principle: First Expired, First Out), wave picking, mobile operations, and automatic labeling. This enables local fast delivery and optimizes inventory turnover.
Logistics and Compliance: It connects with freight forwarders and customs brokers to provide visibility into cross-border transportation. Based on Incoterms, the system automatically triggers ownership transfer and automates inter-company transactions, reducing the complexity of settlement among multiple entities.
Planning and Replenishment: Leveraging views of available inventory and delivery dates, the system optimizes replenishment and picking processes. It supports partial picking, weight scanning, and route consolidation, improving warehouse and distribution efficiency.
Role in Financial Services (chemical supply Chain Finance/SCF & Finance)
Real-Time Finance: The system enables consolidated account management and unified accounting for multiple subsidiaries. It provides real-time visibility into accounts receivable, accounts payable, capital, and expenses, shortening the closing cycle and strengthening cash flow management.
Compliance and Account Closing: Built-in support for multiple accounting standards and statutory reporting, along with expense commitment and budget verification, ensures the accuracy and compliance of account closing.
chemical supply Chain Finance Integration: By linking orders/invoices with accounts receivable and payable, the system supports accounts receivable factoring, letters of credit (LC), cross-border payments, and foreign exchange settlement. It enhances capital turnover through payment term optimization and financing tools.
Risk Control and Decision-Making: Real-time dashboards monitor aging of receivables, overdue payments, credit limits, and price fluctuations. The system automates early warnings and collection processes, supporting data-driven credit granting and pricing decisions.
Key Control Points and Value
End-to-End Consistency: From RFQ (Request for Quotation)/PO (Purchase Order) to delivery and settlement, the system relies on master data and Incoterms as anchors, reducing manual intervention and errors.
Global Compliance and Multi-Currency Support: A single platform meets accounting and reporting requirements across multiple jurisdictions, lowering compliance costs for overseas expansion.
Capital and Inventory Efficiency: The combination of real-time financial data and automated warehouse/distribution processes enables faster turnover and optimized cash flow.
Data-Driven Operations: A unified data source and real-time reports support decision-making in procurement, inventory management, pricing, and risk control.
Adaptability and Scalability
Multi-Business Format Integration: It supports the unified operation of multiple models such as self-operation, third-party transactions, and distribution. Rapid iterations are enabled through low-code/SuiteScript (NetSuite’s customization tool).
Overseas Expansion: Out-of-the-box features for multi-subsidiary management, multi-currency support, multi-language capability, and statutory compliance facilitate the large-scale replication of overseas warehouses and overseas subsidiaries.
Ecosystem Integration: It connects with front-end transaction platforms, logistics/customs services, payment/financial institutions, and data services to form an end-to-end solution.
Summary
As Echemi’s digital core, NetSuite ensures fulfillment efficiency and inventory turnover on the chemical supply chain side, while enabling real-time accounting, compliance, and capital optimization on the financial side. Together, these capabilities form the core competitiveness of Echemi’s global chemical B2B distribution and chemical supply chain financial services.