Elemica Featured on Supply Chain Brain
A decade ago, the chemical market was full of imports from the Far East. Shareholders, wanting their industry to experience a 10 – 15 percent growth like the electronics industry
The 2008 crash refocused the minds towards the higher service that was provided by traditional suppliers from Europe and North America. Now, in today’s market, with lower energy prices, and over five years from the crash, the chemical industry has begun to reshuffle its portfolio.
In 2016, chemical and energy businesses are focusing on portfolio management by realigning their business strategies for success and growth over the next 10 years. Mergers and acquisitions are rampant.
By 2020, there will be a big reshuffle of the industry apart from mergers and acquisitions. Companies are focusing on revitalizing their products, selling them to non-traditional markets like CPG, automotive and electronics, to raise revenues and increase their value. Chemical companies will focus not only on customer service and supply chain visibility, but also on optimizing customer engagement and delight.
The chemical industry is ripe for growth and will continue to drive the day-to-day market as chemicals are found in nearly every product or package. The message to the world will be that people in their everyday lives can’t exist without the solutions that the chemical companies provide.
Elemica has worked with a number of our clients during their divestiture, merger and acquisition work. Helping them to maintain the value, they get from automating their supply chain. The Elemica Supply Chain Operating Network, with its ability to connect all of a supply chain ecosystem is primed to support the changing face of the Chemical and Process Industry. Simon Hardy, who leads up our EMEA Solution Architects, discusses how he has seen the market change over the last ten years and makes some predictions moving forward.