On March, EFESO Management Consultants had the opportunity to sponsored Logichem Europe. An opportunity to gain transformative insights and best practices in chemical supply chain management.
Throughout the event, our active engagement included a panel discussion with Dr. Jörn Grosse-Wilde, Partner Supply Chain & Operations Strategy at EFESO, alongside Andrea Punzo from Borealis, Leo Kuetten from DuPont, and Arvind Ambo from A.P. Moller - Maersk, as they discuss reshaping supply chain strategies for resilience, agility, and sustainability.
The chemical industry is currently under high pressure. This clearly show when asking for the strategic priorities to company leaders: For your Supply Chain Strategy, what are the top priorities?
Cost is by far the most important element in the strategy and this because of different elements, sometimes also geographically different:
- Energy cost and availability
- Rising transport costs
- Raw material costs
- Environmental costs
Next to that the industry currently also has to cope with uncertainties that makes taking the rights decisions difficult.
In an industry that operates at a global scale the possible uncertainties grow exponentially. The current geopolitical instability in certain regions makes correct allocation of investments very difficult. The growing focus on sustainability, where the industry is both part of the problem but also the solution and the different approached and expectations in different continents creates uncertainty. This is especially the case for the operations in Europe, questioning the competitive position of the European based plants.
As a result of that you see many footprint discussions and questions:
- Europe as a staggering region
- India with growing population
- Middle east who is investing heavily
- China as investment region
In terms of logistics the majority of the chemical companies are outsourcing logistics activities as it is not part of the core activities.
In terms of adopting new technologies the industry is not at the forefront. 1/3 of the companies has today no plans to invest in AI tools.
Sustainability
Sustainable targets, achieving net zero has in the majority of the chemical companies been included in the supply chain objectives
However the step towards actions is still vague.
At EFESO Management Consultants, we can provide valuable assistance in overcoming the barriers and challenges faced by your organization. From diagnose and assess, to journey synchronization and continuous improvement, our support doesn't end with implementation. With our expertise in supply chain optimization, operational excellence, and change management, EFESO Management Consultants can be your trusted partner in accelerating your journey towards achieving a highly synchronized value chain in the Chemical industry.
We thank all the individuals and companies that contributed to this key insights.
Check-out the Chemicals section to learn more about the techniques and levers that organizations are using to speed up their journey.
