Top chemical companies Archives - Business Intelligence

Tag: Top chemical companies

Chemical industry

Procurement Challenges in the Chemical Industry : What CPOs’ Must Strive to Combat

The global chemical industry currently represents one of the largest worldwide interacting sectors delivering essential materials to several major industries including pharmaceuticals, agriculture, manufacturing and construction, and automotive. This is an indicator of the fact that any major changes in the chemical industry could also significantly affect these related sectors. Procurement is an unceasing challenge for companies across various sectors, and procurement in the chemical industry is no exception. In fact, procurement challenges are particularly pronounced for chemical sector companies. Implementing sustainable solutions is the way forward for CPOs in chemical companies to effectively meet critical procurement challenges.

Based on insights gathered from our industry experts, we have listed below some of the top procurement challenges faced by CPOs in the chemical industry.

challenges faced by CPOs in chemical industry.

Competition is extremely fierce in the global chemical industry. Although the chemical sector offers immense potential, it also poses significant procurement-related operational challenges for players in this sector. Suppliers may find it difficult to distinguish themselves amidst the cost pressures and increasingly complex organizational relationships. Furthermore, shortened value chains arising due to vertical integration and portfolio consolidation also builds new risks for purchasers in the chemical industry.   

 Maintaining compliant, efficient, and effective processes that drive growth is paramount for success in the chemical industry. Ensuring supplier excellence is the key to achieving this. It can be done through robust sourcing and vendor evaluation processes. Another key challenge that most CPOs face in the chemical industry is the lack of skilled workforce, capabilities, and localization that would act as a high-performing business partner. The success of procurement in chemical companies are also weighed down by the absence of a concise digital strategy or systems to support procurement business targets.

If your company offers multiple products, you will know that there are multiple facets to each of the products you are offering. As such, any change in market trends can have a significant impact on each of these aspects. Keep abreast of the changing market trends by partnering with us.

How Infiniti’s procurement market intelligence can help CPOs combat these challenges

Chemical industryCreating a competitive advantage by overcoming critical procurement challenges in the chemical industry requires clear insights into the market changes and effective strategies on how the company can adapt. Here’s what Infiniti Research provides for procurement officers:

Category market intelligence

With advanced market intelligence techniques, experts at Infiniti Research help CPOs and other key decision makers in chemical organizations to analyze and understand best practices for category-specific strategies and sourcing of chemical ingredients as well as raw materials. Our techniques can also support companies in the chemical industry with in-depth market knowledge and price benchmarks to create a competitive edge over other market players.

Demand planning and management

Infiniti’s demand planning and management solutions help procurement in chemical companies by providing critical insights on cross-functional optimization strategies and also pin-pointing capabilities to identify key cost-saving opportunities for companies in the chemical industry.

Supplier risk management strategies

Our team of experienced risk-management experts offer specific supplier management and evaluation insights that help organizations in the chemical industry explore various supplier-related risks and improve their decision-making process during supplier selection. We also help chemical companies for undertaking specific supplier assessments.

Industry best practices and competitive benchmarking

Leveraging new business processes, organizational approaches, and technologies are now becoming imperative for chemical companies to stay ahead of their peers in the market. As attempting to improve all aspects of the business processes at once could prove to be unfruitful, chemical companies can leverage solutions such as industry best practices assessment to benchmark and implement the best practices for sourcing and product development. Our solutions can help companies to improve time to market, reduce costs, and respond appropriately to new product or service launches.

Don’t let unforeseen events hamstring your business growth! Learn how your business can leverage the right opportunities and level complex market challenges using our solutions.

German chemical industry

Gaining Profitable Growth in China’s Chemical Market: Imperatives for International Chemical Companies

China’s chemical industry overview

Although the economic expansion in China has slowed down over the past few years, it still remains a key growth market for most global chemical companies. Industry experts believe that over the next decade, China will continue to be one of the major importers of commodity chemicals. Furthermore, international chemical companies have advanced and more sophisticated products that can support the further stages of China’s economic development. However, international companies in China’s chemical sector have new challenges coming their way. Companies in China are increasingly moving out of low-profit commodity segments towards more sophisticated sectors. They are also enjoying several home-player advantages in the highly competitive market. In this article, chemical industry experts at Infiniti Research provide an outline of the moves that international chemical companies must make in order to continue capturing profitable growth opportunities in China’s chemical market. International chemical companies that want to create a place for themselves in China’s chemical market must align their products and business models with China’s evolving needs, learn how to access the shifting demand, and strategize to expand and strengthen their base in this market.

Irrespective of the industry, entering a new market is highly challenging with several unforeseen risks that could prevent the company from sustaining in that market. Request a free proposal to know how you can partner with us to leverage our market entry solutions and bolster your business growth in a foreign market.

Chemical companies

 Adapt to the market’s changing needs

There will be a continued demand growth for chemicals in China. But the areas of opportunity in the country’s chemical market appear to be increasingly nuanced, due to which chemical companies must take measures to adapt and align their strategies accordingly. One approach to achieve this is by focusing on the company’s products that match up with China’s chemical industry needs and what the Chinese state is promoting. The chemical industry is a catalyst to promote growth in various strategic industries such as electric vehicles, new energy technologies, and civil aviation that the Chinese government wants to nurture growth globally. As such, this opens new windows of opportunity for international chemical companies to become China’s trusted partners in native innovations in industries that have government backing. International chemical companies can also work closely with government bodies in China to form product specifications based on the changing standards or rules in the region. This could prove to be a new growth driver for chemical companies.

Want to know more about the future of chemical manufacturing and the key factors that could alter the way chemical companies do business in the future? Request for more information from a chemical industry expert.

Manage stakeholders proactively

Chemical companies that want to sustain and grow their business in China’s chemical market must work and maintain positive relations with several stakeholders. This includes stakeholders across the country’s business and regulatory landscape. New plant launches and product approvals especially in regulated product categories require comprehensive rounds of approval from government authorities as well as state-run research institutions. Therefore, it is vital for international chemical companies to ensure proactive stakeholder management. Successful chemical companies are even going to the extent of hiring government-affairs teams to identify the key stakeholders in all areas that are related to their business operations in China. These teams understand stakeholder concerns and work on ways to address them in time so that hinderances to the company’s project can be avoided.

Choosing the right distribution partners

Businesses in China are generally heavily relationship-driven. As a result, it is vital for international chemical companies to have a local presence especially in new markets and business verticals. To gain a better foothold in China, chemical companies must focus on building a distribution partner network through which they can get to customers with ease and provide unique offerings in the highly competitive marketplace. Having the right distribution partners are critical as relationships, dependability and ethics vary sharply among different players in the market.

Get in touch with an expert to learn more about our solutions for chemical companies.

Chemical market analysis

Navigating Complexity for Specialty Chemical Companies: 8 Major Roadblocks and How to Over Them

With plummeting profitability and increasing market competition, specialty chemical companies are undergoing several unique challenges. They must identify strategies to pull through such roadblocks in order to survive in the long run.

The global specialty chemicals market continues to expand at a rapid pace. This growth has been underpinned by factors including increased productivity, sound business models, and portfolio restructuring. However, market growth isn’t exactly good news for the existing companies in the specialty chemicals industry. The flourishing market means that it would draw in more players and add on to the competitive pressure in the industry. Therefore, survival for specialty chemical companies greatly depends on understanding the most pressing challenges and leveraging insightful strategic planning to overcome them.

Key challenges facing specialty chemical companies 2019

specialty chemical companiesChanging business portfolios

Specialty chemical companies are increasingly being transformed through increasing product diversification and rapid merger and acquisition activities. Business portfolios of specialty chemical companies are constantly changing as producers add and dispossess divisions, engage in new market entries, and participate in mergers. Moreover, globalization has increased the business portfolio complexity of specialty chemical companies.

Dynamic demand patterns

One of the key challenges faced by specialty chemical manufacturers is uncertain and unpredictable demand patterns. They also have only limited visibility into future customer orders. The growing customer portfolios spanning over several end-use markets and visibility into demand variability represents significant challenges for specialty chemicals manufacturers.

Specialty chemical companies are currently facing several unique challenges. Fortunately, there are some strategies that specialty chemicals producers can take to support success. RFP for more insights.

Expanding product portfolios

In order to increase differentiation, strategize new market entry, and maximize customer loyalty, specialty chemical companies are continuously experimenting with new product innovations. New product introductions coupled with frequent adaptation of existing products have caused a significant rise in the number of products produced, consequently, leading to greater operational complexity.

Regulation and compliance

Specialty chemicals manufacturers are increasingly facing issues in documentation and certification of product quality and procedural compliance. These issues are largely driven by government regulations, end-use market requirements, or specific customer requirements. Furthermore, batch and lot level traceability requirements are becoming common in several segments and add to the complexity of operations.

Increasing customer intimacy

Specialty chemical companies are increasingly adopting the trend of moving closer to their customers by offering them tailored products and customer-specific service arrangements. Although moving closer to the customers has been a source of differentiation for specialty chemical companies, it has resulted in increased complexity of other business operations.

Get in touch with an analyst to know how we help clients in the chemical industry to keep track of market challenges and learn how our tailor-made solutions can help overcome major roadblocks in the market.

Industry price changes

The raw materials used by specialty chemical manufacturers are often priced on the higher side. The market fluctuations between countries often leave manufacturers vulnerable to the associated price drops. For instance, the 2014 shale gas price drop in the US resulted in heightened competition in Europe. This placed additional pressure on manufacturers in an already high-pressure market.

Growing demand for multi-stage manufacturing

Customers are increasingly seeking specialty chemicals that can only be produced through complex, multi-stage, multi-product processes that require more time to complete and an extensive list of components. Both of these can largely cut into the profit margin of specialty chemical companies.

Technology upgrade requirements

Most of the digital technology available today can be both a boon and a bane for specialty chemicals companies. While tools like IoT, artificial intelligence, and blockchain provide several advantages, implementing and integrating them into existing processes can be a time consuming and labor-intensive process.

Learn more about Infiniti’s tailor-made solutions for specialty chemical companies

Brand awareness strategy

Reducing Operational Cost by 20% and Achieving Savings of $4.8 Million for a Chemical Company | Infiniti’s Latest Market Intelligence Engagement

Market Intelligence Engagement for the Chemical Industry

Intensifying globalization is opening up new opportunities for companies in the chemical industry. However, ambiguity across global chemical markets, pricing pressures, and fluctuating regulatory landscape are increasing challenges for chemical manufacturing companies to stay relevant in the market. As a result, it is becoming imperative for companies in the chemical industry to adapt quickly to evolving market changes and embrace new market opportunities.

With increasing competitive pressure from new market players, companies in the chemical industry are facing huge challenges to stay relevant in the market. Request a FREE proposal to know how our market intelligence solution can help companies in the chemical industry to understand the industry’s fluctuating dynamics and stay ahead of their competitors.

Business Challenge

The client is a chemical manufacturer based out of Germany. With the landscape of the chemical industry continually changing, the client was facing challenges in quickly adapting to transformations and maintaining a competitive edge. Also, the client’s inability to realign their business operations with evolving chemical market demands impacted their overall profit margins. The company was also losing their market share to their competitors. The client, therefore, realized the need to conduct a market intelligence engagement to track emerging market trends, regional market developments, forecast supply-demand shifts, and keep tabs on target market segments.

Other challenges faced by the chemical manufacturer were:

Chemical industry challenge #1

Unanticipated variations in commodity prices – Unexpected fluctuations in prices of crude oil and natural gas were affecting the company’s production process. This subsequently resulted in huge capital losses for the company. The client, therefore, wanted to stay abreast of rising costs and market trends to sustain a healthy bottom line.

Chemical industry challenge #2

Increasing number of recalls and quality audits – As companies in the chemical industry are exposed to a variety of government and other regulatory compliance, it was becoming important for the client to maintain strict quality management to equip themselves for quality audits. Therefore, with Infiniti’s market intelligence solution, they wanted to keep track of evolving regulatory changes in related service sectors.

 Chemical industry challenge #3

Forecast supply-demand shifts – With Infiniti’s market intelligence solution, the client wanted to analyze the regional market developments and market demands to accurately forecast supply-demand shifts. By doing so, the company in the chemical industry wanted to better manage inventory activities.

Solutions Offered

As part of market intelligence engagement, the experts at Infiniti Research conducted a detailed analysis of the chemical industry in Germany. The factors such as industry growth rate, latest trends and innovations, opportunities, and challenges were taken into consideration during the analysis. Also, the experts analyzed the client’s market size, supply chain requirements, and competitive landscape.

With Infiniti’s market intelligence engagement, the client was able to gain a comprehensive view of the market and their customers. The experts also helped the company in the chemical industry to explore new opportunities in the market. By understanding the needs and requirements of the market, the client was able to take confident capital investment decisions. Also, the chemical manufacturer was able to optimize their product offerings and operate safely and sustainably.

Furthermore, with Infiniti’s market intelligence solution, the company in the chemical industry was able to understand the potential market demand and accurately forecast supply-demand shifts. Also, by keeping track of the changing economic and governmental policies, the company in the chemical industry was able to smoothly undergo quality audits. Also, Infiniti’s market intelligence solution helped the company to withstand unexpected fluctuation in the market, enhance inventory planning, and increase reliability across operations. Within the course of one year, the client was able to reduce operational cost by 20% and achieve savings of $4.8 million.

Our market intelligence solutions can help chemical companies to track emerging market trends and regional market developments to quickly adapt to the evolving market requirements. CONTACT US today to leverage our market intelligence solution.

The Future of the Chemical Industry

4 Major Trends in the Chemical Industry

 

Request for more info to know how our market intelligence solutions can help companies across other sectors.

In our recent article, we’ve listed out the top chemical companies across the world. Read the article here.

Top 5 Chemical Companies Across the World

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice