“The times they are a-changin’”… in the chemical industry. Time for action!
The 2016 winner of the Nobel Prize in Literature may have written this epic song some 50 years ago, but today it most certainly applies to the chemical industry. This industry has outperformed almost every other sector in terms of growth, profitability and overall financial performance over the last decade. Oh yes, it’s been a great industry to be in. But the tide is turning…
Margins are coming under pressure as a result of increased marketplace competitiveness, a slowing Chinese market and the rise of chemicals as a commodity. According to the thought leaders of McKinsey, performance improvement in supply chain & operations will be one of the five key drivers for every chemical company to stay ahead of the game. We support that view, and believe that digital transformation in supply chain planning will prove to be the tipping point in this very much needed sector-wide revolution. After all, there is still a lot of untapped value in this area.
Sure, the Industry 4.0 wave is surging strongly through the chemical industry. And yes, integrated business planning (IBP) as a process is replacing good old S&OP in trying to “truly” synchronize sales, supply and finance. But today, both movements are still very much disconnected. Most Industry 4.0 initiatives are focused on the individual site level. And most network planning processes still rely on static and therefore outdated master data as critical input parameter.
Optimize end-to-end results
At bluecrux, we help our clients to connect advanced analytics & big data bottom-up, in order to optimize the entire supply network top-down. This allows chemical networks to optimize their end-to-end financial results on a day-to-day basis. Imagine the situation where, out of the vast amount of actual production/supply/order data, you can automatically derive real and up-to-date network capacities. Where you can optimize product allocations in real time and anticipate your future overall results way upfront, still in time to aim and adjust.
The good news is this: as a chemical company you have until 2025 to transform your business. The bad news is that it’s only 8 years from now, so you better get moving.
Sounds intriguing? Contact us now and let’s start making this real for your company.