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How the chemical industry builds a global business decision-making system to create refined management capabilities
Release Time:
2024-07-21
In recent years, the chemical industry has faced increasingly intense market competition, demanding high quality, fast delivery, and competitive prices, which puts significant pressure on production and delivery. Additionally, the chemical industry experiences large fluctuations in business volume due to upstream and downstream influences. For example, the recent rise in international energy prices combined with high shipping costs has increased cost control pressures for chemical companies; on the other hand, due to certain international regional situations, prices of some chemical products (such as fertilizers) have surged, and market demand changes rapidly. Chemical companies need to promptly understand changes in the final use demand of their products and quickly adjust their business accordingly. Specifically, the current challenges faced by chemical companies include the following aspects:
In recent years, the chemical industry market competition has become increasingly intense, demanding high quality, fast delivery, and favorable prices, putting great pressure on enterprise production and delivery. In addition, the chemical industry experiences significant business volume fluctuations due to upstream and downstream influences. For example, the recent rise in international energy prices combined with high shipping costs has pressured chemical companies' cost control; on the other hand, due to certain international regional situations, prices of some chemical products (such as fertilizers) have surged, and market demand changes rapidly. Chemical companies need to promptly understand changes in the final product usage demand and quickly adjust their business accordingly. Specifically, the challenges currently faced by chemical companies include the following aspects:
Upstream supply: chemical raw materials are diverse, bulk futures prices fluctuate greatly, material demand and supply batch constraints are varied, allocation methods are complex, and different production lines have significant demand differences, making it difficult for enterprises to coordinate procurement and supply planning;
Midstream production: continuous production with capacity expected to be fully utilized, but demand fluctuates. Coupled with environmental policies, power restrictions, and on-site logistics factors, how to match market demand, reasonably allocate capacity, and produce suitable product types to maximize profits;
Downstream sales: information flows unidirectionally, lacking sharing and collaboration between departments, with fragmented plans across departments, unable to see the overall business situation; how to use existing resources and achieve optimal results in a short time to improve profits and support growth.
These challenges impose higher requirements on the quality of business decisions across all global aspects of chemical enterprises, including production resource allocation, production scheduling tracking, refined process management, marketing systems, and production-sales coordination. The traditional business decision-making method based on business rules plus experience can no longer meet enterprise needs, urgently requiring a more intelligent decision-making mechanism.
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