Managing Risk in the Chemical Supply Chain

In the chemical industry, being prepared for risk events before they happen is key to saving time and money. Hear how Nufarm prevents supply disruptions using The riskmethods Solution TM.

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How can you keep your supply chains in equilibrium? It’s a matter of the right reactions – and the right Solution

Almost all manufactured goods (96%) rely directly or indirectly on chemicals. And the global chemical market is expanding, so supply chains are becoming even more complex. Yet productivity challenges, cost pressure, and loose customers bonds, along with aftereffects of pandemic-related disruption, mean chemical companies will need resilient supply chains to protect margins.

Three Reasons Why Your Chemical Supply Chain Is at Risk

How Our Customers Master Supply Chain Risk

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“We use The riskmethods Solution for the full cycle of supply chain risk management—to identify risk in the first place, to understand the impact of that risk, and then to take action to mitigate it.”

Artur Kulawiński, Global Risk Manager in Procurement, Clariant

Why Manage Risk with The riskmethods Solution?

be-riskaware

Be risk aware

Make better business decisions. Uncover risks in your global supply chains through sub-tier visibility.

react-faster

React faster

Gain competitive advantage. Fulfill contract terms, ensure business continuity, and be a supplier of choice.

be-proactive

Be proactive

Protect your business. Prevent damage from shortages, geopolitical tension, or compliance violations.

Use a Total View of Risk to Overcome Your Supply Chain Challenges

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Risk # 1: Complex Supply Chains

Disruptions in the supply ecosystem can cause ripple effects up and down the value chain.

Challenges: Relying on specialty-chemical suppliers or site clusters make companies vulnerable to shortages and price volatility. Complex and integrated global chemical supply networks are susceptible to chain reactions, while customers tend to form loose bonds.

The riskmethods Solution enables you to cope with challenges of complex supply chains.

  • Stay vigilant. Gain visibility into your sub-tier suppliers, third parties, and transport routes on a world map to uncover vulnerabilities such as site clusters and single-source situations
  • Continuously monitor your supply network for risks. Get real-time information and early warning signs on incidents that could lead to issues among chemical suppliers
  • React faster to events that cause shortages. With real-time notifications and ready-to-use mitigation plans, you can stay ahead of rising market prices

Risk #2: Compliance and Sustainability

A myriad of laws regulates the chemical industry and industries that use chemicals. Compliance is vital to avoiding fines and reputational damage.

 

Challenges: The chemical industry is already under rigorous regulatory watch. Finished products that rely on chemicals are also highly regulated, in industries including construction, transport, electronics, and medicines.

With The riskmethods Solution, you can:

  • Get risk profiles to ensure that suppliers, vendors, and third parties are compliant with regulations, including cybersecurity, environmental directives, and human rights aspects
  • Act fast on compliance issues in your network, thanks to sub-tier visibility, real-time monitoring, and mitigation plans
  • Install proactive measures to ensure that you adhere to laws, and avert the negative impact of any violations in your supply network while meeting customer demands
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Risk # 3: Geopolitical Risk

Global market shifts and potential trade disruption could paralyze one-third of the chemical value chain.

Challenges: Heavy reliance on China, which outputs nearly 39% of global chemicals, as well as tensions among trading nations contribute to uncertainty in the chemical value chain. Governments are increasing pressure on companies to diversify their supply chains and develop regional ecosystems.

With The riskmethods Solution, you can navigate geopolitical risks:

  • The riskmethods Solution informs you if business partners relocate or close their sites. You can immediately take action to make sure quality and delivery requirements remain stable
  • Stay informed of country-related tariff changes. Get early warnings of emerging geopolitical tensions, and ensure that you comply with restrictions or sanctions
  • Quickly visualize the affected suppliers and other risk objects on a world map

Customers all over the world rely on our solution

Have a question about managing risk in the chemical supply chain?

Ask away – no question is too hard for our SCRM experts! Fill out the form and we will be in touch to schedule a time to talk.
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