The Chemical Supply Chain: By The Numbers

Companies now look at the supply chain as a way to generate value and revenue says Accenture.

Sharing supply chain best practices is on the rise within the chemical industry, but there are still areas for improvement, says Christopher Lange, senior executive in consulting firm Accenture's Chemicals practice. "While companies have traditionally looked at the supply chain as a way to cut costs, they now look at it as a strategic and financially important part of the business and a way to generate value and revenue," Lange reports. "In a competitive global landscape, sharing best practices will be critical to increasing performance."

In a recent study of best practices, Accenture discovered that while there is an awareness of the importance of resilience planning, there is relatively little action being taken by the chemical manufacturers. For instance, only 30% of participants feel their level of spending is appropriate. Other findings from the study:

40 Percent of respondents who believe their customers, markets and channels are diverse enough to virtually eliminate risk from customer concentration

59 Percent who say it would take multiple losses to put their business at financial risk

17 Percent who say losing a major channel would put the company at financial risk

32 Percent who think losing a major customer would put the business at financial risk

17 Percent who say losing business in a specific geography would put them at financial risk

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