Industries »Chemicals & Fertilizers
Chemicals & Fertilizers
Chemicals and Fertilizers industry have their own set of characteristics which make their supply chain unique in many ways. Commoditization of products which leads to no products remaining unique for long, globalization putting pressure for cutting costs, hydrocarbons and energy cost spikes, retailers and consumers demanding lower prices, environment – health - safety pressures continuing as strong as ever, are some of the challenges which the industry faces today. To meet such challenges and remain competitive, supply chain of such industry needs to be responsive and optimally designed.
Plant operation is one area where there are lots of inefficiencies prevailing. Even the best plants do not have more than 80% of capacity utilization. Much of the capacity in the reactors, tanks and storage houses remain empty throughout the year. Supply chains of these firms are full of redundancies leading to a lot of duplicate assets, working capital and extensive time and human effort. Sourcing has become a critical activity which acts as the driver of high performance. There is a need to conduct strategic sourcing initiatives and using supplier management methodologies to build relationship with the suppliers. Chemical companies have to develop distribution networks to meet the service commitments they've made to their customers while minimizing inventories. They may also have to work within the structural constraints of their business, being far from customers and raw materials and utilizing older, more expensive production assets.
We at Aqua MCG realize that there are no easy fixes to the challenges offered by the industry but with our expertise and understanding of the issues plaguing the industry, we are confident to provide solutions, adding value wherever we are engaged.
Last Updated On:10/10/2008 7:50:54 PM
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