Many chemical companies have worked hard to improve their supply chains over the years, however, most have not been able to sustain the changes made … If you look at the performance of key supply chain metrics such as asset utilization, transportation costs as a percent of revenue, inventory turns, service performance, etc. – not much has changed over the past fifteen years.

On the other hand, companies are realizing more and more that supply chain excellence directly impacts a company’s financial performance. In fact, a recent study indicates that the average market capitalization of companies that utilize supply chain best practices increases by 7% to 26% more than the industry average over a three year time frame (see Connecting with the Bottom Line: A Global Study of Supply Chain Leadership and Its Contribution to the High-Performance Business by Accenture, INSEAD and Stanford University).

The chemical industry is facing enormous challenges: global competitors and customers, security and environmental issues, increasingly complex networks, increases in logistics cost and volatility of feedstock and transportation supply. In this environment world class supply chain performance becomes even more critical. The challenge is knowing with a high degree of certainty what steps to take to achieve that performance, where to invest and how to measure results. The intent of the Global Chemical Industry Best Practices Study and Assessment is to give companies information they can use to significantly improve their business performance.
 

	Identify ways to lower costs and increase effectiveness, service and safety
	Identify specific actions that can be implemented quickly
	Identify improvements that will be sustainable over time