AGROCHEMICALS agrochemical companies and toll manufacturers is anticipated to become increasingly prominent in the coming years . This digital transformation is poised to enhance communication on production schedules and inventory levels , improve order processing efficiency for reduced lead times , enable realtime monitoring of inventory levels for effective inventory management and enhance supply chain visibility to track deliveries and shipments .
For successful e-commerce integration , toll manufacturers must take proactive steps , including ensuring scalability , integrating with ERP systems , incorporating collaboration tools for efficient communication and optimising inventory management processes that will help them in terms of operational effectiveness , customer satisfaction and also providing the foundation for data-driven decision making .
Global agrochemical companies have been focusing on adopting digital platforms to accelerate innovation .
The idea is to develop an open-source ecosystem of various technologies to ensure high collaboration across the supply chain .
OpenAg is one such example of a global community trying to accelerate digital agriculture innovation . This is expected to be a game-changer for many agrochemical companies , as it will help accelerate penetration of differentiated systems in various key markets through faster development of new products .
This is true , especially for AIs that can be developed either in-house or through strategic partnerships . In such a scenario , the toll manufacturer will play an important role in helping agrochemical companies to meet their strategic goals of introducing new products in their key regions of interest .
Outlook
As agrochemical manufacturers pursue region-specific market development efforts , toll manufacturers are ideally
placed to assist them in dealing with regional regulations and demand dynamics . However , to benefit from this opportunity , toll manufacturers will need to :
• Invest in building trust with agrochemical manufacturers by bringing in more transparency from promoters and senior management with respect to aligning long-term goals
• Proactively implement a roadmap for digital transformation which potentially open up new opportunities for collaboration with agrochemical companies on aspects related to product development and better control over the supply chain
• Consider diversifying into ancillary services such as filling and packaging , repackaging and logistical support ; and
• Develop scalable infrastructure and research capabilities while exhibiting compliance with regulations and standards , and safeguarding sensitive data . ●
Prasad Kulkarni
HEAD - CHEMICALS / MATERIALS PRACTICE
Figure 1 - Drivers for outsourcing of agrochemical synthesis & manufacturing Average score per parameter ( out of 10 ) based on responses received during a survey of 20 pesticide manufacturers in EU done by Aranca in Oct 2022
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ARANCA prasad . kulkarni @ aranca . com www . aranca . com
JAN / FEB 2024 SPECCHEMONLINE . COM
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