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Practical Insights (Blog)

Adapt To Succeed in the US Chemicals and Materials Industry

This year, the US chemicals industry has become increasingly unpredictable from a purchasing and supply chain management standpoint. At the same time top–line organic growth is proving ever more elusive. However there is light on the horizon in the form of industry and economic growth. The slower-than-expected pace of this growth has opened a short window of opportunity which companies can exploit to gain the competitive edge.

Topics: Chemical

Overcoming Rail Logistics Congestion in the Chemical Industry

As shale gas becomes a game-changer for the US chemicals industry it will, in all likelihood, promote growth within the chemicals market. However, the negative side of this change is that it is also slated to become a significant factor in constricting transportation capacity, with shale oil and fracking materials consuming rail cars and tank trucks.

Topics: Private Equity Chemical The Maine Pointe Colleague Community

Chemical Companies Need to Take Supply Chain and Sales/Operations Planning More Seriously

How mature are chemical companies in terms of unlocking the potential of sales and operations planning (S&OP)?

Peter Robinson: Based on my exposure to a number of chemical companies and looking at their inventory profiles (raw material and finished goods), most of them are not at all advanced in S&OP. They are not taking seriously the need for an S&OP process and not getting the end-to-end supply chain involved in operations planning. Ultimately they need a single game plan that all stakeholders buy into so that true discipline may be imposed on what is manufactured. More importantly, the game plan must reflect what they sell: chemical products. Not manufacturing them. That is how working capital and inventory are optimized.

Topics: Chemical