Chemical Management
Article | July 22, 2021
The chemical industry is evolving. The marketing, purchasing, and selling of chemicals are being affected by forces in the market, with digitization unquestionably having the most significant impact. Many of the existing digitizing models have likely already been given some thought and then rejected.
Chemical businesses are currently conducting pilot projects or starting to gradually scale up their digital initiatives after moving past the proof-of-concept stage. Although this past year brought many difficulties, it also provided an opportunity to revise and re-evaluate foundations moving forward. The Great Reset, as the World Economic Forum has dubbed this time period, is illuminating how the chemical industry might leverage digital technologies to advance.
Whether prompted by governmental requirements or consumer desires, chemical businesses' net-zero ambitions will necessitate new expenditures throughout the whole chemical value chain. As a result, back-office costs must be as efficient as possible to free up money to pay for those investments while keeping a profit.
Consumer pull
The most essential requirements for the success of a new product are a solid understanding of customer needs and wants, the competitive climate, and the makeup of the market. The primary factors that influence the needs of the consumer are price, timing, and quality. Therefore, companies create ongoing procedures and plans with these three factors in mind to better serve client needs and grow their market share by regularly creating new products.
Technology pushes
The influence of digital technology is constantly growing. One of the foundational elements of 21st-century sources of growth is data-driven innovation. There are numerous items and procedures in the history of innovation that were the result of an accident or careful forethought. Vast volumes of data, or "big data," are being produced and used as a result of the convergence of numerous phenomena, including the growing migration of socio-economic activities on the Internet and the decline in the cost of data collecting, storage, and processing.
Large data sets are becoming an essential resource for the economy, supporting the development of new markets, procedures, and goods while also generating substantial competitive advantages. For example, a billion customers can now access broadband at a reasonable price because of the digital world's supporting infrastructure. In addition, cloud computing and the enormous amount of information processing equipment it needs are developing swiftly, and low-cost connected gadgets are being introduced into every industry.
Economic benefits
The financial gains that can be realized through digitization are genuine. The new digital technologies and businesses have seen an influx of cash, and the public markets are rewarding early adopters with record values. The effects of digitization are spreading swiftly throughout every business. Digitization is the changing of life and work as a result of new technologies, not only their acceptance. Much like earlier technologies, modern emerging technologies like the cloud and big data quickly become part of businesses' operations. Unknown to many, this is having a much more significant impact on the industry that makes these tools as well as on customers.
Digitalization that derives from and includes strategic business objectives can greatly benefit chemical firms. Cost savings of roughly 30 to 40 percent can already be made on average today. Additionally, in certain situations, digitalization aided in improving service quality and affected the bottom line by, for instance, enabling new business models. On average, platform-driven digitization projects pay off after 18 months.
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Chemical Technology
Article | July 20, 2022
From novel process technologies to sustainable plastics— the chemical industry is scaling up its digital initiatives. This has opened new doors for organizations to explore opportunities to increase efficiency and streamline the process.
Admittedly, the chemical industry has been a little slower in implementing digital transformation. But COVID-19 has vastly increased the momentum of digitization among chemical plants.
According to a KPMG survey, 96% of industry CEOs saw digital transformation accelerate in their organizations, with 48 percent saying it advanced by a few years. In addition, according to a recent Manufacturing Leadership Council (MLC) survey, 82% of respondents agreed that the pandemic had "created a new sense of urgency" in driving investment in new technologies and digitalization.
Digital transformation solutions offer tremendous potential in the chemical sector. It can play a significant role in driving more value. So let's dig deeper and look at key technologies in bringing digital transformation to the chemical industry.
Circular Economy
Chemical manufacturers cannot exist within their own four walls any longer. They recognize the importance of working with their customers and other businesses and organizations to conserve resources and protect the environment. Chemical companies may source raw materials from recyclers as part of a circular economy, which necessitates fool proof solutions to confirm their quality and availability. Circular economy consortiums may advocate for reducing environmental threats such as ocean plastics or exposure to hazardous chemicals, opening up new avenues for innovation.
Customers are constantly looking for new ways to reduce waste and protect their ecosystems. For example, farmers may benefit from solutions that can instantly analyze soil quality, weather, and crops to determine the best products and schedule for applying fertilizers, crop protectants, or new seeds. Using this data, they use only what they need, generate less waste, and maximize output.
Error-Proof Operations
Chemical firms are also embracing technology to achieve operational excellence. They've discovered the benefits of using machine learning andIoT technologies to automate standard back-end processes. Technologies such as these reduce the need for human intervention — and thus the possibility of human error. Blockchain technology can also significantly reduce counterfeit chemicals' use, which is especially important for chemical manufacturers who supply products to the pharmaceutical or agricultural industries. In addition, blockchain technology can enable track-and-trace processes that require less work and waste while protecting the enterprise's reputation.
Staying Sharp in the Dynamic Market
Staying agile in an uncertain M&A environment is a top priority for some businesses. For example, chemical firms must be able to quickly divest assets, adjust portfolios, and adapt operations in response to market changes. Technology can provide executives with the visibility into operations, shipments, and market conditions required to make critical decisions and remain agile.
Data Analytics
The chemical industry is leveraging cloud-based storage systems to store and share confidential data anytime and anywhere. Additionally, data analytics solutions can analyze all the data effectively to provide valuable insights to the industry. This will help you make meaningful decisions in real-time.
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Chemical Technology
Article | July 20, 2022
Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake.
Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts.
This report, produced in collaboration with OpenText, dives into the results of our Intelligent Operations in Oil and Gas Survey 2020, revealing where the industry is in terms of its adoption of Intelligent Operations and the hurdles it needs to overcome to truly embrace digital platforms and solutions.
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Chemical Management
Article | May 13, 2021
NICE WORK, if you get can get it. A trucking company in Fort Worth, Texas, is offering to pay experienced drivers $14,000 a week – $728,000 a year – as the US struggles with a nationwide shortage of truckers or lorry drivers.
This reminds me of perhaps an apocryphal tale, from the height of the last Australian mining boom. Before iron ore prices collapsed in late 2014, there was a story about workers at mining site road junctions who operated manual “Stop and Go” signs. They were said to be earning more than Australian dollar (A$) 200,000 a year.
Before you pack in your job as, say, a petrochemicals sales manager and head to Texas or mine sites in Western Australia, there is the risk that when you arrive at the door of your new prospective employer, the bubble might have already burst. This is assuming we are in bubble conditions.The pressure is clearly building in petrochemicals and other commodity markets as prices in some regions remain at record highs or continue to rise.
Today’s prices are the results of shortages of commodities supply (for example in petrochemicals, an outcome of the US winter storms), very strong demand and supply chain disruptions.I am beginning to believe that the latter is the biggest reason for commodity price inflation which is feeding through into sharp rises in the cost of finished goods – and a lack of goods availability.
It is delivering and manufacturing enough stuff that seems to be at the heart of today’s problems due to shortages of everything from container freight space and semiconductors to wooden pallets, tin cans, metal drums, cardboard – and US truck drivers.
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