The chemical industry is positioning itself to lead the coming materials transformation; but, with volatile energy prices, inflating costs, and uncertainty in the global economy, several headwinds need to be weathered simultaneously. Companies thrive when they’re able to rebalance supply chain models and overcome short term threats while building new and long term capabilities. To deliver future stability, the foundations need to be laid in the current, uncertain environment.
The main challenges we see for specialty chemicals supply chains
- Customer segmentation and demand volatility
- Balancing high asset utilization with flexibility
- Margin optimization
- Sustainability and carbon footprint
Customer segmentation and demand volatility
Compiling, structuring, and assessing relevant information from various demand sources is a burden.
Drastic improvements in forecast quality are necessary to reduce inventory and detect fluctuations in end markets (e.g. automotive).
Balancing high asset utilization with flexibility
As in most asset-intensive industries, chemical companies face persistent production yield and asset availability challenges.
There is a clear need to switch from output-maximized to yield/cost-optimized operating models in order to maintain flexibility and better respond to demand-side changes.
Global production networks and multi-level product structures have resulted in complex supply chain and optimization problems.
Margins are under constant pressure and many deciding factors have an impact. Identifying optimal trade-offs that accommodate all margin levers will prove ever more important.
Sustainability and carbon footprint
Chemical companies need to balance costs and their carbon footprint while also managing resiliency.
It’s a tough act that requires different supply chain strategies than those that were applied in the past.
The focused solutions we offer
Smart planning optimization
We help chemical companies to achieve targeted performance improvements in the area of supply chain planning by directly improving KPIs while building long-term planning excellence.Learn more
Our manufacturing teams help chemical companies to improve output, service and reliability to help turn individual plants into a network high-performers.Learn more
Digital supply chain twin (Axon)
Our Axon digital supply chain twin (DSCT) technology enables industrial manufacturing companies to create end-to-end visibility across their supply chain and build resiliency.Learn more
Our teams help leading chemical companies across the globe to rightsize customer service models.Learn more