The industry faces high price and demand fluctuations due to the ongoing pandemic and the Russia-Ukraine conflict, and it is expected to continue in the long run due to various internal and external factors such as the shift towards clean energy and the rapid adoption of electric vehicles.
Stock or sell intermediates or finished products
The selection of whether to stock or sell intermediates or finished products has been a major challenge for petrochemical companies, which produce their products through a long list of raw materials and intermediates based on recipe.
Limited visibility
The industry lacks adequate visibility and collaboration with suppliers regarding constraints and disruptions, leading to limited visibility.
Multiple tiers
The multiple tiers in the industry, from upstream to downstream, often result in a lack of end-to-end visibility on cost and inventory.
High cost of logistics and manufacturing
The high cost of logistics and manufacturing compared to other industries is a significant challenge, and a careful balance between sourcing, manufacturing, transportation, and customer service is critical to improving margins while maintaining high levels of service.
