Challenges in today’s chemical industry

Manage customer segmentation and demand volatility

Compiling, structuring, and assessing relevant information from various demand sources both in short time as well as long-term leads to improved forecast quality and a potential to reduce inventory and detect fluctuations in your customers’ industry (e.g., automotive)

Balance high asset utilization with flexibility need

As is the case in many asset-intensive industries, chemical companies face persistent production yield and asset availability challenges. Advanced analytics now allow chemical companies to switch from output-maximized to yield/cost-optimized operating models to better respond to demand-side changes and manage the needed flexibility.

Effective collaboration with business partners

Collaboration in supply chain will be vital to retaining the chemical industry’s global competitiveness. The industry has the longest supply chain on a global level, making supply chain efficiency a crucial factor for maintaining the industry’s competitive advantage. Collaboration with partners is essential to enhance operational efficiency and identify mutual benefits and risk-sharing.

Supply chain resilience

Given today’s global supply networks and interlinked economies, disruptive events significantly impact supply chains, leaving chemical companies exposed to demand and supply risks on both the strategic and operational levels. Analyzing risks and impact on the Supply Chain allows developing mitigation actions and backup plans for critical facilities.

E2E margin optimization is key to survival

Asset-intensive global production networks and multi-level product structures have resulted in a complex supply chain and optimization problems—availability and price of raw materials, which can be significantly influenced by macroeconomic trends and geopolitical developments. Margins are under pressure, and there are so many deciding factors that have an impact. Find the optimal balance by taking all these elements in the mix and gaining insights into the actual levers of your E2E margin optimization.

Services we have in-house to tackle those challenges

Plant effectiveness

Production plant effectiveness is crucial. However, throughput struggles are still a reality today. Are too many influencing factors making your plant unreliable and ineffective?​ Let us help you discover how to shift your focus in order to grow in reliability and effectiveness without saying goodbye to flexibility. In other words, how to start planning and reserve capacity for uncertainties and, in the end, regain control!

E2E financial optimization through IBP

We break down the silos and ensure the seamless alignment of different functions with a strong integration of finance. We install a mindset of assumption-based decision-making enabled by pragmatic scenario management leading to E2E margin optimization. Creating awareness throughout the full organization and coaching of your team on all levels makes your organization ready to embed these step-change improvements towards faster and better value-based decision-making.

Planning system implementation

We help you to build the digital supply chain of the future. We provide a unique and holistic set of capabilities for leveraging system and process design expertise, change management, advanced data methods, and strong implementation skills. We have an end-to-end mindset, with key capabilities in areas from demand planning and supply planning to production planning and distribution planning.

Network (re)design & optimization

Get the visibility you need across your entire distribution network. Using our in-house modeling tool, we create an auto build and detailed virtual twin that forms the basis of your network design study or optimization (NDS/NDO).

From this starting point, we can build various scenarios both from inside-out point of view, e.g. optimized total cost, lead times, inventory,… as well as from the outside-in point of view considering the value drivers for your (future) customers and translate this into distribution requirements such as service levels, value-added activities, …

With our approach, we pave the way to creating a sustainable platform for capturing this outside-in view on a recurring basis, but also embed network optimization & evaluation into your processes, moving away from the one-off exercises.

Distribution optimization

We help you get the best out of your distribution network, using predictive logistics to focus on every relevant detail: from quality and productivity to supplier and co-packer integration, end-to-end traceability and incorporating sustainability goals. And we stay focused on the bigger picture of your corporate strategy, communications and organizational setup.

Customer centricity

Customer centricity goes way beyond mere sales and customer service. If you really want to make a difference in your end-to-end supply chain to put the customer more at the center and, in the end, ensure a better customer experience, which will result in a competitive advantage, on the one hand you will need an overall customer centricity company strategy & mindset.

However, and potentially even more importantly, you need to put this mindset into practice by for instance embedding a customer-centric solutioning approach as a basic project methodology. Within bluecrux we can support you with the strategy and the pragmatic tools to ensure it is operationalized in all your projects.

“How do you protect your margins within an asset-intensive and heavily material-dependent supply chain that chemical companies typically face while complexity and volatility keep rising? Raw material prices and availabilities make sourcing decisions critical to margin. At the same time, the market is fickle, and agility is vital to maintain service levels. Is your supply chain up for that complex decision-making? The right technology can support, but that only works when you have your processes in order… and your production data, like BOMs and recipes… and your analytics.”

Ben Van Lancker, Head of Planning – Manufacturing

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