A renewed focus on and competence in cost management and control is required to help alleviate the issues and cost pressures that the chemical industry is currently facing in today’s business environment. This has only intensified in the current economic downturn. Customers are demanding lower prices and increased service levels, while competitors are getting smarter, leaner and expanding their global reach. New product lifecycles are shorter and competitors are entering the market faster. Energy and raw material costs have exhibited extreme volatility. Globalization is lengthening supply chains and increasing business complexity, while increased government regulation and scrutiny and greater product stewardship are increasing the amount of information required in the chemical supply chain, often at significant cost.
Sustainable cost reductions can be achieved through transparent management information and accountability. A strategic approach, focusing on both cost reduction and cost management and control processes in parallel, will enable organizations to set the stage for, and perhaps self fund, more transformational activities.
PwC’s chemicals industry advisory experts work to provide sustainable, long-term solutions. Our two tier approach, balancing cost reduction with ongoing cost management and control, enables clients to review and streamline cost management across the board, from reducing unnecessary discretionary spend, assessing and managing 3rd party costs, through to implementing lean processes and effective controls.