Chemical Industry

Integrated Consulting for Specialty and Commodity Chemicals

The Chemical Industry historically operates in a cyclical environment covering raw material swings, demand variability, and political and economic uncertainties. Being positioned at the start of many other industry value chains exposes it even more to rapidly changing downstream effects and rapid raw material movements. Discussions with our customers show how difficult it was for the chemical industry to take the right measures during the recent downturns to cope with the sudden drastic decline of orders without endangering customer satisfaction and even more to switch back to normal operation once recovery took place. Slight changes since the last downturn include: an increased emphasis being given to identify potential risk within Supply Chain Operations and options for mitigation, and Supply Chain Flexibility.

Chemical Industry
Chemical Industry

Today, we continue to support our clients in coping with the challenges posed by the ongoing weakness of the western financial system.  It comes as no surprise that companies continue to:

  • focus on day-to-day ongoing cost efficiency and effectiveness and capital/cash effectiveness through-out their business value chains
  • re-appraise their strategic direction, to safeguard core-competence, while shedding peripheral activities and taking advantage of new M&A opportunities thrown up by market dynamics

Optimising the entire chemicals sector value chain 

J&M is recognised for both taking an end-to-end approach to evaluate the business value chain of chemical companies, and identifying opportunities to improve efficiency, effectiveness and cycle times. Our prime focus is on working in partnership with clients to deliver significant, tangible cost improvements and optimised working capital.
 
Throughout the last 15 years J&M has successfully worked with clients in the Chemicals sector and this experience gives us a wealth of knowledge of sector-specific characteristics such as 
  • supply chain operations 
  • logistics excellence 
  • transactional procurement and leveraging indirect spend
  • continuous improvement in production excellence 
  • pricing and commercial excellence
  • post-merger integration to implement synergies
  • handling multi way customer/competitor/supplier trade-offs
  • introducing best practices and insights from other J&M sectors including FMCG, Hi-Tech, and Automotive 

The result: Optimum interplay between assets, employees, processes and systems

Our clients look for consulting support based on the following competencies:  
  • Developing and implementing approaches and solutions with a bottom line focus to deliver measurable sustainable difference ~ delivering a 25-30 % reduction in product inventory to a fine chemicals company
  • End-to-end value chain experience (Commercial, Purchasing, Manufacturing, Distribution/Logistics, Customer Service) ~ to deliver a new business proposition of low cost leadership to a specialty chemical company
  • Insights into integrated supply chain management and planning ~ helped a large fine chemical producer to implement a world-wide S&OP process
  • Integrated supply chain and distribution network design and optimisation, e.g. reducing the regional network complexity and cost by 20-25 % for a chemicals distributor
  • Ability to fine-tune and optimise critical business systems e.g. for a specialty chemicals leveraged existing SAP functionality to increase overall business process efficiency
  • Developing pragmatic IT visions and strategies for implementation, e.g. for a global commodity producer developed the post-merger integration IT vision and strategy to reduce total cost of ownership by 30 %
  • Leading inventory reduction and optimisation initiatives, understanding cost/cash to serve and driving complexity reduction and increased customer value add e.g. we helped a leading world-wide colour producer to reduce inventories by 30% 
  • Continuous improvement leveraging available six sigma and lean tools and techniques to create bespoke CI initiatives, e.g. introduced best of breed CI concepts to a global chemco through us of lighthouse pilot projects to drive local ownership and sustainability
  • Creating pragmatic, implementable KPIs to effective support operations, e.g. creating a Supply Chain Operations KPI Cockpit for a Global Chemco to support SC management reporting and decision making