Speciality Chemicals Magazine MAY / JUN 2024 | Page 64

SUPPLY CHAIN MANAGEMENT
company ’ s make versus buy identity ( made to stock vs . made to order ).
Strategic advantages
Network modelling and footprint rationalisation builds a commitment to continuous improvement in a culture that stresses cooperation and collaboration . They prepare a company to meet shifts in supply and demand , competition and regulation , resource and labour , and similar upsets . Among the results are :
• Less firefighting and better cross-functional alignment
• Improved efficiency , agility and accuracy across procurement , operations and logistics
• A better balance between supply and demand
• A more competitive position in the marketplace
• A reduction in conversion costs and spend
• Waste reduction and quality improvement
• Insight into how and where technology can benefit the company
• An increase in data-based decision making
• Near real-time visibility into a derisked end-to-end supply chain . In another case , a speciality chemical company had grown beyond its legacy systems and processes . Its procurement practices were out of sync with economic and marketplace realities and it had not accounted for the total cost of ownership in pricing their products .
The company needed access to data , training in taking advantage of market movement , supplier optionality , and a different method for managing storage and inventory . When implemented , those changes
netted a 10.4 % improvement in EBITDA in the first year and an 11 % reduction in spend . 3
Conclusion
In a volatile business landscape , the chemical industry faces a pivotal moment . By integrating network modelling and footprint rationalisation , companies can drive sustained growth and operational excellence , ensuring resilience and prosperity amidst uncertainty . ●
Steve Ottley
SENIOR MANAGING DIRECTOR , HEAD OF CHEMICALS & ENERGY
SGS MAINE POINTE k + 1 214 478 2257 J sottley @ mainepointe . com j https :// www . mainepointe . com /
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64 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981