Gulf chem­i­cal in­dus­try must col­lab­o­rate in sup­ply chain to re­main glob­ally com­pet­i­tive

Chemical Industry Digest - - News & Views -

Col­lab­o­ra­tion

in sup­ply chain will be ab­so­lutely key to re­tain the global com­pet­i­tive­ness of the Ara­bian Gulf chem­i­cal in­dus­try. This is ac­cord­ing to a new re­port to be re­leased by the Gulf Petro­chem­i­cals and Chem­i­cals As­so­ci­a­tion (GPCA).

With over 83% of GCC petro­chem­i­cal out­put des­tined for ex­port to over 100 coun­tries world­wide, the in­dus­try has the long­est sup­ply chain on a global level, mak­ing sup­ply chain ef­fi­ciency a cru­cial fac­tor for main­tain­ing the in­dus­try’s com­pet­i­tive ad­van­tage. Cost op­ti­miza­tion will be par­tic­u­larly im­por­tant as the av­er­age cost as­so­ci­ated with GCC chem­i­cal sup­ply chains rep­re­sents about 30% of landed prod­uct prices, which has a sig­nif­i­cant im­pact on chem­i­cal com­pa­nies’ bot­tom line.

The re­port is based on find­ings of the GPCA Sup­ply Chain Col­lab­o­ra­tion Sur­vey 2018, which gauged the views of 19 GPCA mem­ber com­pa­nies who col­lec­tively ac­count for 75% of the to­tal chem­i­cal out­put by vol­ume in the Ara­bian Gulf. Ac­cord­ing to the sur­vey, 52.6% of re­spon­dents see po­ten­tial in se­cur­ing var­i­ous com­pet­i­tive ad­van­tages through in­ten­si­fy­ing col­lab­o­ra­tion.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.