The Chemical Industry is currently facing unprecedented change and the winners will be those who take action now.
Digital Technology is changing the game, despite slim margins and volatile markets and it’s being used to leverage and uncover new ways to win: think lower expenses, improved product quality and faster time to market.
It may not be obvious straight away how new technology can be integrated into your current operations but with a re-imagining of your business models, processes, and how people work, there are big gains to be made.
Your competitors have already made a start, so refusing to engage will simply leave you disrupted but going digital will make all the difference.
Where is the Chemical Industry Now?
According to research by IDC Manufacturing Insights the market is poised and ready to take off. Dr Stefan Guertzgen the Global Director of Industry Solution Marketing for Chemicals at SAP says;
“In today’s digital economy, chemical companies can access tremendous amounts of data and then aggregate and analyze it with state of the art in-memory technology. Customized algorithms are then applied, which typically sit on top of in-memory data bases, to identify patterns. By looking at variables and using basic statistical techniques (e.g. trend analysis), they can find new ways to reduce waste and expedite processes. In fact, chemical companies can use data to control costs throughout the product lifecycle, from research and development, to delivering and pricing.”
What are the gains of Digital for the Chemical Industry
Making the shift to digital can help improve Quality Control, reducing the need for tedious manual testing, managing product quality in real time, allowing adjustments on the fly and reducing waste. Nearly 80 percent of Dow Chemicals’ testing is done using automation, saving an estimated 8,000 labour hours in a single year and reducing test cycle times by 50 percent. The company also improved production system reliability with a 25 percent defect reduction. Read about it here.
What’s more, with access to valuable real-time information about things such as raw material prices, available stock and production capacity you can give your customers answers on pricing and fulfilment timetables straight away.
In today’s competitive market, customer experience is more important than ever and by going digital you will be able to offer your customers the best. For example, by logging into a customer portal, they could be getting access to customized pricing and product information. They could modify quantities, change shipping options, review order history and even place an order online. In fact everything that today’s digital customer expects.
In a highly complex business environment such as the Chemical Industry, making the switch to digital will allow you more flexibility than ever over the things you can control and will help you deal more effectively with the things you can not.