Navigating Complexity: Problem or Opportunity?
The specialty chemicals business is no exception. Specialty chemical producers are facing increasing business and operational complexity as product portfolios expand, customer requirements become more stringent, manufacturing operations become more complicated, and business portfolios become transformed by merger and acquisition (M&A) activity. What used to be relatively straightforward decisions regarding which products to produce, where, how and when to produce them are no longer simple or even consistent every cycle. Producers must contend with a multitude of potential production and fulfillment options and a highly dynamic environment. Applying “age-old” processes, methods and tools does not always address today’s complexity in specialty chemicals and can result in both profit erosion and lower customer satisfaction.
On the surface, complexity appears to be something to be tamed or managed out of existence. Complexity can, however, represent a significant business opportunity. Per McKinsey, “if complexity can be seen not as a problem to be eliminated but as a challenge to be managed and even exploited, businesses can generate additional sources of profit and competitive advantage.” Navigating complexity in specialty chemicals by applying advanced supply chain modeling and optimization solutions can both unlock new profit opportunities and increase customer responsiveness, enabling market share gains against less agile competitors hindered by complexity. In fact, specialty chemical companies who implement supply chain excellence programs report up to a 10% increase in margins.
To learn more about how advanced supply chain solutions can enable specialty chemical producers to navigate complexity from a problem to an opportunity, please download our latest whitepaper entitled Profitability Through Supply Chain Excellence: A Technology Insight for Specialty Chemicals Producers.