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SUPPLY CHAIN DISRUPTION IN CHEMICAL INDUSTRY

SUPPLY CHAIN DISRUPTION IN CHEMICAL INDUSTRY

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SUPPLY CHAIN DISRUPTION IN CHEMICAL INDUSTRY

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  1. SUPPLY CHAIN DISRUPTION IN CHEMICAL INDUSTRY Chemicals & Specialty Materials

  2. Accordingto the report, the chemical industry contributes to global Gross Domestic Product (GDP) through indirect, direct, and induced impacts, equivalent to 7% of the overall world's GDP, and supporting around 120 million jobs worldwide. It is offering materials and substances to sectors such as agriculture, automotive, construction, and nutrition. The chemicals market is currently transforming post-COVID-19 pandemic, so chemical companies need to adopt new technologies in their operating models, businesses, and processes. In the global chemical industry, the supply chain management will face new challenges and new opportunities. Therefore, it is critical to understand key developments in the chemicals market and the resulting impact on the individual supply chain. Only then will companies have the proper preparation to face these challenges and seize the opportunity to create a long-term competitive advantage. https://www.pukkapartners.com

  3. Nature of COVID-19 Impact on Chemical Industry Leading chemical producers are reducing operational and capital expenditure in the face of the COVID-19 crisis. These companies' manufacturing operations have been scaled down to 40%-60% capacity due to disruptions in raw material supply and labor shortages. In February 2020, the global chemical production was dropped by 2.4%, with the Asia-Pacific posting a 3.9% production decline in the same month. According to the China National Bureau of Statistics, the country's chemical manufacturing fell by around 20% compared to the previous year, while profits declined by 66%. View For More Information :- https://www.pukkapartners.com/insight/supply-chain-disruption-in-chemical-industry Considering the COVID-19 impact on chemical categories, it has seen that each type of chemical witnessed a decline in production. For instance, the production of synthetic rubber and specialty chemicals, such as paints and coatings, witness a downfall of 7.3% and 9.4%, respectively. Considering the global market condition, the paint and coating demand sees a downfall as construction activities are halted, and the lower production in the automotive industry. Restrictions on travel have directly impacted the demand for petrochemicals such as C4 derivatives and fractions, including butadiene, synthetic rubber, and acrylonitrile-butadiene-styrene are primarily used in tires. Moreover, the lockdown and travel restrictions globally have impacted the demand for chemical materials across several applications, including the transportation and automotive industries. It has further led to an even more substantial reduction in demand for tires, which has a considerable impact on the synthetic rubber market.

  4. Chemicals Supply Chain of the Future   https://www.pukkapartners.com

  5. Companies Strategic focused on Supply chain Update Global leading retail giants invest in emerging technologies as a matter of course; factually, most chemical corporations have not been the case. However, the benefits of incorporating digitalization can bring tremendous opportunities and could unlock up to USD 550 billion in chemical industry valuation, with digital supply chain initiatives driving USD 70 billion of that value. Furthermore, by systematically integrating digital technologies, chemical companies can drive efficiencies and realize average savings of around USD 90,000 in terms of cost per employee. Future Prospects for Chemical Industry Supply Chain Many companies have business endurance plans in place, and chemical companies have survived major storms, trade wars, market downturns, political disruption, and other calamities. However, the sheer magnitude and complexity of today's COVID-19 crisis demand immediate action to revive the chemical factory and business operations with updated methods like how chemical companies do business, not only for the short-period but also for an extended period. This crisis isn't going to go away in a shorter span. Recovery will be a long with many challenging paths. The very idea of business as usual will have to change and it has to be integrated with the latest digitalized technologies. Those who build resilience with balanced cost and growth strategies during the pandemic and adapt quickest to the new market reality will be best placed to capitalize on the global chemical industry opportunities that recovery from COVID-19 will bring. https://www.pukkapartners.com

  6. How We Are :- Pukka Partners provide customized intelligence solutions to C-suite executives and functional growth leaders, along with other key offerings including market & competitive intelligence, management & strategy consulting, pre-investment advisory, real-time business intelligence, and data analytics services across sectors, globally and locally, on new & emerging markets and disruptive technologies. We offer advisory and actionable insights around public policies, investment tracking along with the obstacles faced by investors, innovation and strategy impact monitoring, identification of industry potential, and technology mapping through comprehensive and standardized research methodology and tools. We deploy our solutions to solve prioritized and critical business challenges by leveraging our in-house expertise and continuous engagement with industry thought leaders in the business ecosystem. Contact Us:-engage@pukkapartners.com https://www.pukkapartners.com

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