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3 Keys to Recession Proofing the Chemical Industry Supply Chain

Chemical companies are reporting strong revenue growth, fueled by significant pricing increases; but they also cite rising raw materials, energy, and logistics costs as current concerns, combined with softening demand in most segments.

The top economic experts agree that a recession is likely in 2023 and that recovery in 2024 is unlikely....Recession proofing may be difficult for an industry that is worldwide in scope, highly specialized, and rife with market competition, but it is possible.

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White Paper: 3 Keys to Recession Proofing the Chemical Industry Supply Chain

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What's in this White Paper?

Chemical Industry Must Prepare Now for 2023-24 Recession

Most chemical companies are reporting strong revenue growth, fueled by significant pricing increases; but they also cite rising raw materials, energy, and logistics costs as current concerns, combined with softening demand in most segments.
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Logistics improvements actively address carrier and labor problems

Because many chemical products are highly dangerous, transportation logistics are complicated by a tangle of import, export, and safety regulations that limits travel domestically and across the globe.

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Digitization and data analysis bring visibility to the supply chain

A digitally enabled supply chain6
has the potential to bring products to market faster, reduce waste, increase productivity, and improve forecasting and decision making if it is approached correctly.

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Introduction

Recession-proofing may be difficult for an industry that is worldwide in scope, highly specialized, and rife with market competition but it is possible. According to Stephen Ottley, SGS Maine Pointe’s EVP of Energy & Chemicals, “Chemical companies that survive the coming recession will start now to optimize their end-to-end supply chain with improvements in procurement and logistics and investments in digital technology and analytics, among other strategies.”

With increasing visibility into their supply chain, chemical companies can recession-proof supplier relations; sales, inventory, and operations planning (SIOP); talent retention; and transportation logistics. Margaret Tedlie, Director of Supply Chain, Logistics, and Procurement at SGS Maine Pointe, states, “The goal for a company is to do something different than they are doing right now.”

The improvements these experts suggest are based on strategies outlined in the SGS Maine Pointe e-book, Three Keys to Recession Proofing the Chemical Industry Supply Chain.

3 Keys to Recession Proofing the Chemical Industry Supply Chain
3 Keys to Recession Proofing the Chemical Industry Supply Chain book image v2