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