Digitalization Is The Way To Go For Chemical Suppliers

Chemical industry is one of the largest and most diversified industries in the world. The global chemical industry is experiencing rapid changes in demand. It has become an important demand for the industry to use digitization to improve its operational efficiency. However, in the adoption of digital technology, the industry is not as dynamic as other industries such as telecommunications, media, entertainment and manufacturing. Companies in the industry are aware that digitization can bring many benefits to improve their supply chain. In addition to improving the supply chain, digitization can also provide fast turnaround time, pricing in line with the latest market conditions, and healthier profits.

Chemical industry can be further divided into basic chemicals, special chemicals, agricultural chemicals and medicine to some extent. Efficient supply chain ecosystem and logistics are key factors for success in these areas. Supply chain management accounts for a large share of the total cost of product ownership and is critical to service levels and top-level results.

Demand for integrated systems

In order to achieve efficiency in the supply chain, chemical suppliers need comprehensive and tightly integrated solutions, which can combine demand management, planning and scheduling. This can be easily integrated into manufacturing execution system and enterprise resource planning system. This integration is essential for manufacturers to effectively manage assets and truly optimize production processes.

Unfortunately, a complex portfolio of solutions is not suitable for tracking assets across the enterprise on a large scale. When information is stored in different areas of the system, it reduces visibility and creates a foundation for the development of information silos. Therefore, dispatchers, planners and managers must directly or indirectly find the agent information that affects the supply chain. Integrated systems and business processes are necessary for all departments to make operations smoother and streamlined.

Supply chain best practices

The chemical industry is developing and the simplified solutions available now are proving to be easier to use and support. A large amount of unstructured data generated by industry can be analyzed by advanced analysis tools to extract management related information. This data can be used to optimize plant utilization and make more informed decisions within the business processes of chemical suppliers.

Here are some best practices:

Easy to use inventory location interface: this will help maintain the required / expected inventory quantity in the most appropriate location. Advanced analysis models will help enterprises set and manage inventory targets at multiple stages of the whole supply chain.

Modeling detailed operational constraints to accurately assess them and find alternatives: in order to overcome operational constraints, there should be a comprehensive business plan or sales and operational plan to clearly understand the demand and supply of each function. Integrated business plans or sales and operations plans are essential in many chemical companies because they are characterized by a combination of high volume, long processing time and seasonal demand for certain products.

Fast and robust “what if” analysis to fully simulate the impact and trade-offs of business decisions: chemical suppliers must ensure that the required information about demand forecasts, supply constraints, and performance for the previous months is provided at the correct level of detail. Advanced data algorithms and statistics are very important for the improvement of demand forecasting and product segmentation.

Dynamic scheduling: for fast and real-time response, dynamic scheduling must be in place, allowing the scheduler to make quick and feasible changes to the scheduling, taking into account the availability of raw materials and the dependence of batch processing.

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