Unlocking the Digital Potential of the Chemical Industry
According to a report by ABI Research1, the chemical industry will spend over $4 billion on digital transformation technologies in 2023 and $7 billion by 2031. This, in turn, makes operations smoother, costs lower, and helps meet customers’ demands.
But how can digital transformation solutions such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics help chemical companies optimize the MRO supply chain? Continue reading to find out.
Unlocking Advantages of Digital Transformation
Technology can help chemical companies improve research and development, optimize production processes, and improve safety and compliance. Plus, it can help create new value propositions for your customers. Here’s how:
AI and machine learning:
- To help chemical companies automate tasks, provide insights into how chemicals react, and improve manufacturing environments.
- AI models can predict the quality of a product based on the parameters you set. This could reduce the need for product inspection and ensure consistent product quality.
- AI can analyze data from production operations to help streamline operations and improve product quality, accelerating innovation.
- To monitor and optimize production processes and track inventory and shipments in real-time.
- They can also help predict raw material shortages.
- Predictive maintenance can also prevent unplanned downtime and optimize production efficiency.
- It can help gain insights into their operations, identify improvement areas, and make data-driven decisions.
- You can use historical data, market trends, and other factors to forecast demand, reduce inventory carrying costs, and reduce stockouts.
- Ensure and monitor conformity with government regulations, reducing the risk of penalties.
Digital supply chain management solutions:
- It can help chemical companies achieve faster, more flexible, personalized customer experiences. They can also enable real-time decision-making and granular visibility into the supply chain.
- Plus, digital platforms can enable seamless communication and collaboration with suppliers, ensuring timely deliveries and reducing disruptions.
- Some examples include supply chain planning software, which can bring financial, commercial, and supply chain plans and forecasts together. Or clever manufacturing systems that use advanced digital technologies to automatically improve production and supply chains.
Digital transformation can greatly improve the chemical industry’s efficiency and profits. It helps with better decisions, automated processes, and data analytics. This can improve EBITDA by 8.5–16 percentage points2. A case in point is India’s major chemical company that worked with Moglix’s digital solutions to achieve similar results.
Moglix brought together 150+ sellers and brands for the company, organized 2500 line items, and introduced a vendor management inventory (VMI) to ensure vendors delivered on time. As a result, they delivered on time 95% of the time, reduced procurement time by 15%, saved 20% on order processing, and cut costs by 6% by standardizing prices and spending less on shipping (1% less).
To learn more about how Moglix can help your business go digital, request a demo. We’ll show you how our platform improves buying and supply management, reduces costs, improves quality, and boosts customer satisfaction.