Strong global competitiveness, massive amounts of data, and high levels of regulation are some of the chemical industry's significant supply chain challenges.
FREMONT, CA: The chemical industry is among the largest globally, providing goods and raw materials to the agriculture, automotive, construction, and food sectors. The industry encounters several challenges in the wake of disruptions caused by the pandemic and increasing global competition. To address these issues, it must transform, particularly by enhancing supply chain management for greater visibility and transparency.
Supply chain efficiency is crucial to the long-term viability of chemical industries. Effective warehousing solutions that support production lines, higher cost efficiencies that result in higher margins, enhanced safety and compliance, and on-time deliveries that increase customer loyalty are just a few of the many variables that can affect an organization's competitiveness.
Supply chain challenges
Intense global competition: Because they operate in a commoditized market, chemical companies must be able to deliver products on time and at the correct price. Service, speed, and reliability are key differentiators. If a company cannot satisfy a customer's needs, the customer can easily find another supplier. Effective chemical companies must have a solid grasp of supply and demand management to keep ahead of these developments and retain the agility required to continuously meet customer needs.
Close asset tracking is required: Chemical companies have particularly stringent asset monitoring requirements since the industry requires specialist equipment such as ISO (International Organization for Standardization)-compliant tanks for carrying both hazardous and non-hazardous liquid assets. A chemical company needs to be able to monitor the position and condition of these containers and other assets in real-time during the delivery process to guarantee safety, quality control, and cost management.
Supply chain complexity: Unlike other manufacturing sectors, which often feature relatively straightforward, more linear processes that produce a consistent end product, the chemical industry's manufacturing process has a wide range of variations. Different processes can be performed separately or in combination, manufacturing can be done in batch production, and different types of processes can be employed to produce intermediate or finished products for a number of applications. The existence of all of these alternative manufacturing choices complicates inventory planning, pricing, procurement, and quality control, implying that chemical companies require a powerful and adaptable method to monitor and manage all of these moving elements.
