SUSTAINABILITY
Process & supply chain optimisation
Digitalisation enables us to make data-driven decision-making a more standard practice , both in shortbut have to understand what the customer is looking for , now and in the future .
The challenges are also numerous . The first is technical infrastructure and security . Most of the chemical industry is based on assets that require considerable infrastructure , hedged in by safety requirements . We need to ensure that the moment we go digital , we have enough security to safeguard both the data and the processes from hacking .
Especially given the industry ’ s costly fixed assets , the investment requirements for digitalisation are huge . Margins are already quite low , particularly in commodities , so the balance is a fine one . Finally , there is a challenge in finding suitably qualified personnel , both from the digital world and existing process operators who need to acquire the skills to utilise these technologies so that they can operate plants remotely .
Sustainability aspects
We are still far from achieving sustainable development . According to an OECD report in 2019 , “ the market share of circular business models remains limited . Recycling , remanufacturing and repair , sharing of spare capacity and provision of services instead of products typically account for less than 15 % of sectoral production .” 2
Digitalisation can offer distinct sustainability advantages to the chemical industry , above all with regard to resource efficiency . This term refers to the way we evaluate whether we are utilising raw materials and other inputs in the best way possible . There are three aspects to this :
• Waste valorisation & the Circular Economy
• Process & supply chain optimisation
• Digital value chains
Success drivers in implementing digitalisation
Waste valorisation & the Circular Economy
As an old saying goes , one man ’ s waste is another man ’ s treasure : something that seems of no use to anyone may be a collector ’ s item . We need to keep evaluating in order to understand what the materials are that are going to waste and if they contain any recoverable value .
In this context , we use the term ‘ material parsimony ’. This reflects the fact that we have many highly complex , multi-component , multilayer materials . Single-component materials are much easier to recycle and that should be our aim .
To achieve efficient disassembly , recycling and reuse , however , we need to know where the material is and what it consists of . This requires global ‘ digital passports ’, either in the form of radio frequency chips or , in a blockchain system , unmodifiable barcodes to identify to which recycling chain it belongs .
In addition , waste needs to be tracked for better collection and recycling , particularly when it comes to municipal solid waste . Digitalisation can enable us to develop and use data about how much waste is being generated in specific areas , and thus optimise the use of resources and capture more of the value .
term decisions and in strategy development . We can then use the large datasets we have to create supply-demand curves and look across the value chain to obtain the best prices when selling recyclate back to the market .
The use of autonomous and collaborative robotics has already gone quite far in some areas , including surgery . The chemical industry already uses automation extensively but there is great potential in the use of ‘ cobots ’ that work alongside humans and help them to carry out specific tasks . They could also free people from repetitive or dangerous tasks , or spare them from avoidable exposure to hazards .
Finally in this area are conditionbased remanufacturing and decentralised manufacturing . The former term is often used to refer to replacing parts . With digitalisation , we can capture knowledge about , for example , how long an item functions in a specific process before needing replacement .
The latter means moving away from very large global hubs where huge amounts of stock have to be kept and then shipped over long distances to a system of manufacturing on demand near to where the demand is . This can save considerable amounts of resources , again thanks to digitalisation .
Digital value chains
The chemical industry has much to learn from the experience of other industries in different kinds of digital value chains . Asset-sharing platforms are decentralised hubs that are not owned by a specific company but are free to use , such that participants can use the machine to make a spare part when they need one , subject only to time being available on it .
Dematerialisation and product as a service – rather like how Netflix and Spotify have transformed how
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