Chemical Management
Article | July 8, 2022
IT FEELS LIKE several lifetimes ago. If you recall, way back in November-December 2019 Asian variable cost integrated naphtha-based polyethylene (PE) margins turned negative because of the increase in US capacity.
Then in January the following year, deep Asian and Middle East operating rate cuts returned some order to the market. Then, bang, as we all know, the pandemic arrived and turned everything on its head.
The pandemic has, in my view, accentuated trends that were already well underway. I believe this means that the supply-driven downturn that started in late 2019 will not return.Long before coronavirus upended everyone’s lives, PE demand was becoming increasingly divorced from GDP growth because of the shifting nature of end-use demand.
Booming internet sales was, I believe, a major factor behind the split between the growth of the overall economies in the developed world plus China and PE demand.The average product bought online is dropped 17 times because of the large number of people involved in the logistics chain, according to Forbes.
This had led to a surge in demand for protective packaging made not from PE and other polymers such as polypropylene, expandable polystyrene and PET films (I will look at their demand growth prospects in later posts).Despite sustainability pressures, the scale of demand for stuff bought online translated to a lot more consumption of virgin polymers.
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Chemical Technology
Article | June 6, 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
Recent discoveries in the Guyana-Suriname basin attest to estimates of 10+ Bbbl of oil resources and more than 30 Tcf of gas.1 Like many oil & gas successes, this is a story that begins with early exploration success onshore, followed by a long period of exploration disappointment in coastal to shelf regions offshore, eventually culminating in deepwater success.
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Chemical Management
Article | July 8, 2022
Individual consumers expect tailored products and services. Color, size, quantity, payment method, and delivery channel options abound. The chemical sector is also now following this suit of action. The global chemicals supply chain has grown steadily for three decades. Chemical businesses are improving their supply chain capabilities to handle complexity and meet client demands. This includes implementing advanced data-driven and cloud-based technologies that enable faster, more flexible, and tailored customer interactions.
Areas of innovation for chemical companies
Living Segmentation
Living segmentation can help chemical businesses better serve clients and satisfy their expectations. This entails adapting supply chain capabilities to each customer's needs.
Asset-light Network
An asset-light network involves developing an ecosystem of partners to add capabilities and value to your supply chain beyond standard co-manufacturing, co-packing, and third-party or last-mile logistics providers. In addition, it should include technology partners that help chemical businesses innovate and be adaptable.
Data and Applied Intelligence
Improving speed, agility, and efficiency in global supply chains demands comprehensive visibility and the correct information. Data provides visibility and insights. The key to providing excellent customer service is gathering the appropriate data and using it strategically to get important insight. The industry generates a ton of data, which is excellent news.
In response to last year's supply chain delays, corporations are building supply chains with geographically spread shipping/supplier choices. Real-time visibility and enhanced analytics can be used to track delays by providing revised ETAs and analyzing downstream implications. Data-driven insights can alert organizations of a delay almost immediately and help them acquire raw materials from another supplier to reduce the domino impact downstream. Chemical businesses must rethink their supply chains to implement living segmentation, asset-light networks, data, and AI.
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