Optimized for cost and tax efficiency 15 to 20 years ago, supply chain strategy hasn’t really been a focus area for executives in the chemicals and performance materials industry for a generation. Then COVID-19 spread around the world, and the industry’s view of an effective supply chain strategy turned upside down. Now companies are trying to balance the need for the immediate correction of supply chain issues with limited resources to implement changes. 

However, there’s good news in the midst of an historically challenging environment. Significant improvement for a reasonable investment is possible when chemicals and materials companies reset their supply chain operating model to build better resilience, and they embed analytical capability in their planning to provide early warning of future disruption.

Getting back on track

Chemical organizations have multiple supply chain management tools and strategies at their disposal, it can be a matter of matching the right approaches to the company’s needs and operational maturity.

KPMG professionals have walked numerous chemicals and materials companies through a series of steps, outlined in our report, that support the evolution of supply chains to help meet today’s challenges without necessarily requiring the cost, time commitments or disruption of a complete and immediate overhaul.