Executive Briefings

Specialty Chemical Companies Successfully Align Supply Chains, Business Objectives

Chemical companies are usually considered quite conservative. But according to McKinsey and Company research, the chemical sector is among the highest-performing industries. Total return to shareholders for chemicals is nearly double that of the world equity market, and the CAGR for the period from June 2008 to March 2015 for the chemical industry runs about 9 percent, compared to 6 percent for all markets. Clearly the industry has been doing something right.

By executing on capital investments that enabled access to abundant low-cost feedstock, commodity chemical firms have been able to control costs in a corner of the market that typically struggles for margins. They also placed an emphasis on operational efficiency and streamlining business processes.

Working closely with customers to ensure alignment in objectives and supply chains has provided insight into future requirements for specialty chemical manufacturers, who focused on developing and leveraging intellectual property. This strategy allowed them to innovate and quickly introduce new highly differentiated products that serviced needs customers may not have even yet been aware of.

Read Full Article

By executing on capital investments that enabled access to abundant low-cost feedstock, commodity chemical firms have been able to control costs in a corner of the market that typically struggles for margins. They also placed an emphasis on operational efficiency and streamlining business processes.

Working closely with customers to ensure alignment in objectives and supply chains has provided insight into future requirements for specialty chemical manufacturers, who focused on developing and leveraging intellectual property. This strategy allowed them to innovate and quickly introduce new highly differentiated products that serviced needs customers may not have even yet been aware of.

Read Full Article