The chemicals industry across the world continues to see a volatile business environment. Chemical manufacturing companies face several upstream and downstream challenges, including the ever-increasing push toward sustainability, increasing regulations, oligopolistic supply markets, long lead times, and highly volatile energy and feedstock costs. The challenges are common across the industry — be it commodity chemicals such as solvents, surfactants, colorants, or specialty raw materials such as intermediates, active ingredients, lubricants, sealants and other such chemicals.
GEP provides a comprehensive range of procurement and supply chain solutions that help large chemical enterprises beat these challenges. From point solutions such as spend analysis and strategic sourcing to enterprise-wide transformation and outsourcing programs, GEP helps chemical companies achieve better business outcomes by supporting them throughout the source-to-pay cycle.
“GEP is helping us immensely in implementing a lot of digital tools like AI, Machine Learning and Smart Demand Forecasting. These predictive tools are really improving the yield of our production units.”
– Ed Breen, Executive Chairman and CEO, DuPont
A Flexible, Strategic Mix
We work with clients to develop short- and long-term sourcing strategies that are aligned to their business goals. We support clients with real-time supply market intelligence to drive timely and informed business decisions. Our experts use a range of commodity price forecasting models to help enterprise procurement organizations time the market and proactively manage their spend.
Our sourcing teams accelerate execution of identified opportunities by bringing all spend into the purview of existing contracts and leveraging GEP’s knowledge base of category data, RFQ templates and RFx/Auction tools for faster sourcing and improved compliance. Our experts develop detailed negotiation strategies for new or existing categories and markets, based on spend data, historical and projected demand, market structure and competition, among others, to help clients optimize their purchases in oligopolistic supply markets.
GEP SMARTTM, our comprehensive sourcing and procurement platform, helps chemical companies counter the lack of supplier competition through a range of powerful, easy-to-use e-sourcing tools. GEP adopts a category management approach to help clients analyze their spend and identify strategic suppliers based on business requirements to drive appropriate supplier relationship management initiatives.
Comprehensive risk management tool kits, comprising crucial supplier information, such as value chain mapping, supply risk assessment, QHSE evaluation, and supplier performance management, help clients identify and mitigate risk effectively.
Our flexible, targeted procurement outsourcing services enable enterprises to implement agile sourcing and procurement practices to minimize supply risk and the impact of price volatility. Leveraging advanced data analytics, we help clients optimize demand management and working capital management.
GEP helps chemical enterprises drive more value from their tail spend through deep-dive analyses to reclassify the tail and identify appropriate strategies to tackle spend at a category or supplier level. We leverage our industry-leading strategic sourcing and transactions management capabilities, and proprietary tools to deliver sustainable results.