The competitive landscape of today’s chemical industry is changing fast. One of the many challenges that companies in this sector have is the need to get their supply chains right. They must maintain focus on costs and, at the same time, be agile enough to deal with demanding customers and volatile global markets.
Historically most chemical companies have built their supply chain around their manufacturing processes. The aim was to keep production costs down by maximizing asset utilization, optimizing batch sizes and production runs and pushing product out to the market. This strategy was successful in a world of relatively stable growth and predictable demand. As times have changed, however, a new supply chain paradigm is required.
Set against the complexities of volatile demand, plant availability, plant equity, regulations and many more, the planning task is enormous.
In general the Supply Chain Planning is done by using a variant of MRP functionality in the ERP platform. The problem is that such systems are blind to rapid changes in demand, customer priorities, maintenance, breakdowns, shifts, materials supply dynamics, etc.
To be safe, planners have to compensate by holding more materials and finished products inventory than needed. What is more, to be responsive real-time planning is often done outside the ERP system. This is time consuming and may be lead to inefficient and even inaccurate plans.
ICRON Technologies enables leaders in the chemical industry to take a comprehensive approach to supply-chain management and to deliver positive effects that are both rapid and long lasting. ICRON Technologies provides an integrated platform consisting out of a set of intelligent tools and mathematical models that support the planning and scheduling function. The ICRON solution is fast, proven robust and compatible with any kind of ERP system. The ICRON platform has proven to be able to help companies to stay agile and adaptable to market and industry demands.
In our experience, companies that invest in their supply chain capabilities see substantial results— typically 5 to 10 percent improvement in service levels, 10 to 30 percent reductions in supply-chain costs and 10 to 20 percent reductions in inventory.
Beyond these bottom-line benefits, increased agility and market responsiveness also allow companies to capture new sales opportunities, driving top-line supply chain growth. ICRON Technologies has proved it is possible to perform well across all these dimensions. Done right, supply-chain capabilities are a true source of competitive advantage.
ICRON has some characteristics that makes it a unique solution for the Chemicals Industry