List of daunting challenges facing the chemicals industry.

 In chemical industry

List of daunting challenges facing the chemicals industry.

The Digital Chemical Company: Pursuing digital transformation across the value chain can unlock new growth opportunities and address some of the most daunting challenges facing the chemicals industry.

Chemical companies are shifting their strategies and reallocating capital across commodity, specialty, performance and applications/services—and doing so on a more rapid and global basis than ever before. Why? Changing global demand, radically different input economics and locations, new advances in downstream industries—such as electronics, agriculture, transportation, clean energy and water—as well as policy shifts around the globe. Decades of cost reduction and the aging workforce has left companies with limited resources to adjust to these seismic shifts. To seize the opportunity, chemical companies must leverage digital tools and capabilities to detect shifts in markets, develop more accurate and agile planning, heighten customer awareness and collaborate with business partners throughout the value chain.

The digital journey: The starting point Digital transformation can turn industry challenges into real business value.

GLOBALIZATION

Ability to adjust more quickly and accurately to manufacturing and supply chain issues • Real-time access to subject matter experts across the enterprise • Optimized supply chain • Integration of transactions (production, distribution, customers).

STRICTER REGULATORY ENVIRONMENT

  • Excel in safety • Environmental compliance and monitoring improvements across the enterprise • Track and trace capability • Document management and access.

MAJOR STRUCTURAL SHIFTS IN INDUSTRY SEGMENTS

  • Ability to redirect strategy and capital allocation across business units and product lines with agility • Increased M&A, joint venture and divestiture activity • Greater focus on margin, customer innovation and market differentiation in non-commodity • Improved efficiency and productivity in commodity

CUSTOMER INTIMACY/ CONNECTIONS

  • Predictive analytics capability • Optimized inventory management • Improved downstream insights • New product development and services insights • Customer sentiment awareness capability.

CAPITAL PROJECTS AND OPERATIONS

  • Leverage expertise across multiple projects and geographies • Analytics for equipment failure prevention • Allow more centralization of design and monitoring functions • Operational capability maturity analysis and improvement.

VOLATILITY

  • Incorporate trading and risk in core business • Manage inventories • Understanding changing customer needs • Policy shifts • Major event monitoring
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