SAP recently published a very interesting white paper with detailed data points outlining the importance of innovation and digital transformation in the chemical industry. We would like to highlight some concerns about the impact of supply chain on profits.
There are countless reasons why this is the best time to start a digital transformation, especially for companies in the chemical industry. According to many similar sources, the chemical industry will usher in a complete transformation in this decade, focusing on sustainability, digitization and accelerated globalization.
In view of this, the following are some specific ways of technological progress in the white paper, which will directly affect the chemical industry and may answer your question about whether digitization is suitable for you:
Although manufacturers have been using the Internet of things for some time, now the whole value chain can be connected, from development to production to supply chain. Data driven insight can drive customer-centric innovation, reduce material costs, and reduce risk.
Prediction analysis will enable chemical enterprises to predict the disruption of downstream supply chain and take corrective measures in real time.
Digital technologies such as blockchain, Internet of things, 3D printing and machine learning provide opportunities to optimize, expand and even destroy supply chain processes and models. Digitalization benefits supply chain processes from raw material certification, fair labor practices to automatic tank replenishment and fleet management. It helps to optimize trade and transportation, additive manufacturing and product integrity management, while minimizing supply chain risk.
Many chemical enterprises still have the problem of data island and lack of integration in manufacturing and supply chain, which hinders them from further realizing process automation in these key business functions.