Prepare for what comes next
The coronavirus hit the chemicals sector hard as the world's economies ground to a halt. Decreasing demand, collapsing oil prices, disruptions in supply chain and a shift in the global competitive order have all presented the industry with enormous challenges. However, alongside those challenges there are still opportunities. As the industry exits the stabilization phase and enters a period of recovery and rebalancing, an effective, digitally-enable supply chain and operations strategy will be critical to harnessing those opportunities.
Shifting global supply change
The pandemic, and the international trade disputes that preceded it , exposed fundamental flaws in the existing global supply chain and operations model. As a result many in the sector have already begun to explore sourcing and producing at least some of their essential ingredients closer to the end user.
Deals and M&A activity
The landscape for M&A in the chemicals industry is also shifting as stock prices tumble and M&A comes to a near standstill. Companies with cash to spare can strengthen their position by taking advantage of the opportunities on offer. Those in a weaker financial state will need to rationalize to survive. We can uncover supply chain and operations-oriented value creation opportunities that enable you to quantify EBITDA improvements, together with working capital risks and opportunities.
Areas of innovation
This has always been an innovative sector where the competitive edge is often based on know-how or production techniques that provide small but significant advantage for efficiency, yield and cost. The pandemic will accelerate the move to a digitally enabled, agile, supply chain and operations. Going forward, the most successful companies in the sector will be those that have best-in-class performance across all functions, aligning supply chain strategies with operational strategies to embed a total value chain perspective.
We can help
We have deep experience in this innovative and competitive sector having worked with three of the top five crop nutrient providers in the world and three of the top five crop nutrient resellers. Our implementation experts have the onsite/offsite service delivery capabilities and industry expertise to help accelerate your supply chain and operations initiatives immediately. In addition, as a member of the SGS group, our clients have access to the world’s leading independent inspection, verification, testing and certification company.
A major integrated chlorovinyls manufacturer.
- Installed a Management Operating System that reduced internal and external car days and measured performance of internal resources
- Negotiated a service level agreement with a rail car repair supplier that included lower hourly and material rates and guaranteed turn time incentives
- Increased capacity that enabled the client to reduce its rail car fleet by 40 cars with potential for a 100-car reduction
- The client's supply chain organization met its savings targets for the year
Maine Pointe has been instrumental in helping guide PotashCorp with our long-term transportation and distribution strategy. With a tremendous team possessing expertise in many disciplines, they were able to communicate knowledge, and effectively transfer it, to our people. We have been extremely pleased with their performance.”
G David Delaney, EVP and COO, PotashCorp
Don't just take our word for it
Industry perspectives and practical insights
- A checklist for making the move to Total Value Optimization™
- From cost containment to strategic value creation
- Six practical initiatives US chemicals executives can implement right now