Gartner Research

Chemical Industry Supply Chain Update, 2014

Published: 28 May 2014

ID: G00262330

Analyst(s): Paul Lord

Summary

Chemical companies must invest in their core operating capabilities to control cost, deliver competitive service and become increasingly agile in their supply response. Supply chain leaders can use this research to align initiatives with strategic drivers and mitigate key risks.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Margin pressure from a sluggish economy and new competitors pushes chemical companies to reduce cost, while maintaining competitive service and quality
    • Strategy: Segmentation and Cost-to-Serve Analysis
    • Execution: Fulfillment Processes
  • Slowed earnings growth causes chemical companies to turn to working capital reduction as a source of cash
  • Low priority given to cost-reduction projects requires supply chain leaders to align improvement road maps with risk mitigation and strategic opportunities

Appendix

  • Gartner's Seven Dimensions of DDVN Framework

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